MedinCell is developing long-acting injectable (LAI) products using its proprietary BEPO copolymer technology with active pharmaceutical ingredients (APIs) for optimal drug delivery. Partnered with Teva, MedinCell is developing three CNS products, the most advanced of which is a two-month subcutaneous (SC) risperidone LAI in Phase III for schizophrenia, with interim data expected in H219. MedinCell is also working with the Arthritis Innovation Corporation (AIC) on a celecoxib LAI for post-surgical pain and inflammation in Phase II, with data expected in summer 2019.
Written by
MedinCell |
Long-acting injectable drug delivery vehicle
|
Pharma & biotech |
QuickView
20 December 2018 |
Share price graph
Share details
Business description
Bull
Bear
Analysts
|
MedinCell is developing long-acting injectable (LAI) products using its proprietary BEPO copolymer technology with active pharmaceutical ingredients (APIs) for optimal drug delivery. Partnered with Teva, MedinCell is developing three CNS products, the most advanced of which is a two-month subcutaneous (SC) risperidone LAI in Phase III for schizophrenia, with interim data expected in H219. MedinCell is also working with the Arthritis Innovation Corporation (AIC) on a celecoxib LAI for post-surgical pain and inflammation in Phase II, with data expected in summer 2019.
Targeting schizophrenia with Teva
Schizophrenia is a severe mental illness that requires a strict drug regimen. Other intramuscular LAIs have been developed to combat non-adherence including Otsuka’s Abilify Maintena (FY17 sales: $632m) as well as Janssen’s Risperdal Consta ($805m) and Invega franchise ($2,569m). Interestingly, a UCLA study found that psychotic relapse was significantly lower for Risperdal Consta (intramuscular risperidone) versus oral risperidone (p<0.004) and that treatment with the LAI led to significantly improved medication adherence over oral (p<0.001). MedinCell is developing mdc-IRM as a ready-to-use (ie does not require reconstitution or dosing initiation regimen) two-month SC LAI formulation of risperidone, which may increase compliance and can potentially reduce morbidity and costs of care. Interim data from its 596-patient Phase III trial are expected to read out in H219, with full data in H120. Teva is responsible for all development costs and MedinCell is entitled to up to $366m in milestones (for all three CNS programs partnered with Teva) and high single-digit royalties on tiered net sales.
Post-op pain management and pipeline expansion
MedinCell is also developing mdc-CWM, a celecoxib LAI for pain and inflammation following total knee replacement surgery. The 50-patient Phase II trial is expected to read out this summer. AIC is responsible for all development costs with 50/50 profit sharing. In addition to three products in development, MedinCell has seven early-stage programs covering a wide range of indications including contraception (partnered with the Gates Foundation), organ transplant, pain, depression and schizophrenia.
Valuation: EV of c €130m post-IPO
MedinCell’s enterprise value is c €130m following its €31.4m IPO in October 2018. The company intends to use the proceeds to expand and further develop its proprietary product portfolio and accelerate its technology platform, where we see future upside potential.
|
Consensus estimates
Source: Bloomberg |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
|
Disclaimer
|
|
Disclaimer
|
Research: Industrials
Following a challenging first half, Cohort has seen excellent order intake in recent months. These underpin anticipated sales for H219 and provide longer-term visibility through some significant multi-year agreements. In addition, the company has bought Chess Technologies, broadening the geographic reach and product range while augmenting growth prospects. The purchase is aligned with the agile growth strategy and was financed through cash and the recently renewed bank facility. Having strongly outperformed its UK defence peers over the last 12 months, the FY20e P/E of 10.7x represents a discount of around 18% to its UK defence peers.