DEEL 5
Tissue Damage after Hypoxic Event: Delayed Graft Function (new Investigator initiated study). Shock response after trauma: Hypovolemic Shock – ongoing preclinical research projects with the US Army and US Air Force
Source Pharming Group N.V: Investor Presentation - June 21, 2018
The above-mentioned indications are actively developed at the time of writing, but beyond these many more are there to be pursued in the future. Many diseases have to do with the complement system, a major part of our immune system, responsible for certain immune-mediated inflammation reactions.
Read more about the complement system and Pharming's Pipeline on their website
Source Pharming Group N.V: Investor Presentation - June 21, 2018
Securing the company's future
Investments in manufacturing are underway to meet the bullish outlook. A new production facility is awaiting regulatory validation in 1Q20. This facility more than doubles existing capacity, while a larger unit (adding 60% capacity) will be under construction soon. The facilities meet not only growing HAE demand but also pipeline expansion.
Pharming has implemented a Business Development unit and is actively seeking to add new products to its rare-disease portfolio through acquisitions and license agreements, which would significantly boost its revenues. Since the successful buyback of US distribution rights from Valeant, Pharming has built a sophisticated rare disease sales organization across the US, reportedly employing some of the best sales people in the HAE market space. A very promising setup to bring such newly acquired products or distribution rights to market. News on new acquisitions or deals are expected to be announced during the remainder of this year.
On August 13th, 2019 Pharming announces the acquisition of an exclusive license to CDZ173, a late stage drug for the treatment of APDS:
Pharming Group N.V. announces it has entered into a development collaboration and license agreement with Novartis to develop and commercialize CDZ173, a small molecule phosphoinositide 3-kinase delta (PI3K?) inhibitor being developed by Novartis to treat patients with Activated Phosphoinositide 3-kinase Delta Syndrome (“APDS”)
Source Pharming Group N.V: Press release Aug.13,2019
The study is currently recruiting for a Phase II/III study that can be submitted to the FDA and EMA for registration immediately upon completion.
The drug named Leniolisib, offers Pharming an excellent opportunity to better utilize its sales channel with a similar market potential as Ruconest. APDS occurs in 1 or 2 people out of a million. The most important market is the US, with a patient population of around 300 to 600 people. The condition was discovered in 2013 and as diagnosis may improve over time, this number may grow like it does with HAE.
Looking forward
Ruconest appearing to gain market share as the go to acute treatment option, while Takeda and CSL Behring (OTCPK:CSLLY) continue to battle over the prophylactic segment of the HAE market.
Pharming expects continued revenue growth from sales of Ruconest for 2019, especially in the US and Western Europe, with better results in each quarter, compared to the comparable quarter a year earlier.
The ongoing Business Development activities are set to deliver more new products in the near future. Products that can be brought to market through its specialized sales organization, contributing to the company's revenues.
Because of previously described negative outlook on the company's future for their HAE medicine, in September 2018, stock prices fell sharply from its earlier highs. The happening changes in landscape on the HAE playing field that are now working to Pharming's advantage are not yet reflected in its current stock price. As a result, today I see a short-term opportunity to benefit from a sharp increase of the stock value in pursuit of its earlier highs.
Due to its accelerating and expanding platform, sales growth momentum, and an execution-focused management team, I believe Pharming is a very attractive investment opportunity with a potential to more than double its stock price over the mid-term.
Considering the blockbuster potentials in its pipeline, the company may well be marked as a takeover candidate once clinical data starts producing results, in which case the stock price may soar to unforeseen heights,[/b] as is no exception in the Biotech/Pharmaceutical industry. This would also be expected to happen, maybe even more so, when the company is allowed to remain independent and start to develop medicines for more 'mainstream' diseases.
Risks
The main risks to Pharming's prospects of successfully developing new indications include slower sales growth for Ruconest in the EU and the US.
Catalysts
2019/2020: Quarterly updates on continued US/EU Ruconest sales growth
2019/2020: Plans for Phase III prophylaxis study in HAE
2019/2020: New deals or acquisitions in the rare-disease market-space
2019/2020: Investigation of new Ruconest formulations/delivery tech
2H19: Initiate studies in acute kidney injury
2H19: Update on pre-eclampsia phase I/II safety study
2H20: Initiate Phase I for alpha-galactosidase in Pompe disease
3Q20: Initial Phase I/II data in pre-eclampsia
2020/2021 Phase III study on new forms of Ruconest administration for