Business concept, long-term objectives and strategies
Egetis is recognized as an efficient and productive Nordic late phase pharmaceutical drug development company with a strong ambition to create value for patients, society and shareholders by developing a portfolio of unique products for the treatment of serious rare/niche diseases with significant unmet medical needs in the orphan drug segment.
With its unique, integrated expertise in pharmaceutical drug development, Egetis will focus on improving the treatment of serious rare/niche diseases with significant unmet medical needs in the orphan drug segment.
Egetis will meet medical needs where there are no adequate treatments by developing drugs in the orphan drug segment with focus on late-stage development and commercialisation.
Egetis’s objective is to create value for patients, society and shareholders by developing effective new treatments for serious rare/niche diseases with significant unmet medical needs.
Egetis’ primary business objectives are:
- Successfully develop Aladote® up to market registration 2024 for commercialization
- Successfully develop Emcitate® up to market registration 2023 for commercialization
- Optimize the potential and value of all the company’s drug candidates.
Egetis’ financial objective is to create increased value for shareholders in the long term
The company thus focuses on projects in the late clinical development phase and in the orphan drug segment. The projects are selected based on several criteria, the most important of which are medical needs, scientific rationale, possible development plan, regulatory risk and market potential. The fact that potential treatments are in areas with few or no competitors and well-defined patient and prescribing groups is considered an advantage and enables effective commercialization through a niched and focused organization.
Egetis’ place in the value chain
Egetis primarily focuses on pharmaceutical drug development in clinical phases through to market approval by pharmaceutical regulatory authorities and commercialisation. The company’s aims to commercialise its orphan drug assets through a niche and focused commercial organisation.
Financing and business model
In its current situation, the Company intends to finance its operations primarily through equity and by out-licensing projects to commercial partners.
The Company intends to generate revenue primarily through sales of own products and/or licensing agreements for ongoing projects as well as through royalties when products are commercialized after gaining market approval.
License fees and royalties
Named Patient sales from Emcitate as well as license fees and royalties through strategic partnerships are the main sources of revenue for the Company. License fees are received when initiating partnerships or at defined milestones and are of a non-recurring nature. Royalties are received when a drug begins to be sold in the market. This form of revenue is of a recurring nature and is received as long as sales take place.
Major license agreement with Solasia
The agreement with the Japanese company Solasia is an example of licensing and an agreement for royalties upon commercialization. The company signed an exclusive licensing agreement in November 2017 for PledOx® in Japan, China, Hong Kong, Macau, South Korea and Taiwan and a second license agreement for the development and commercialisation of PledOx® in Asia, targeting neuropathy caused by taxanes and any other chemotherapy was entered in Q4 2019. License fees of up to MUSD 100 (corresponding to approximately MSEK 980) are divided into initial remuneration and partial payments linked to predefined milestones during continued development, the regulatory process and commercialization. In addition, Egetis is also entitled to royalties on future sales of the product. Solasia has also undertaken to fully finance the expansion of the global Phase III program to additional countries in Asia. To date, upfront and development milestones of ~7.5 MUSD have been received.