Corium International (
Eight other companies are scheduled for the week of March 31, 2014. The entire IPO calendar is available at IPOpremium.
The manager and joint managers are Jefferies; Leerink Partners. The co-managers are Needham; FBR Capital Markets. SEC Filings
Overview
Valuation Valuation Ratios |
Mrkt |
Price / |
Price / |
Price / |
Price / |
% offered |
Annualizing Dec 3 qtr |
Cap (mm) |
Sls |
Erngs |
BkVlue |
TanBV |
in IPO |
Corium International ( |
$184 |
4.4 |
-23.0 |
6.4 |
8.3 |
33% |
|
|
|
|
|
|
|
Conclusion
The rating on
Business
Market growth
According to Datamonitor, the global value of the market for systemic transdermal products, including patches, was approximately $20 billion in 2010 and is expected to grow to approximately $30 billion by 2015.
Two proprietary platforms
Six marketed products
Together with its partners,
These marketed products are Clonidine Transdermal Delivery System, or
Current products
All of
Most of these entities have substantially greater financial and operating resources than
Crest Whitestrips
P&G currently sells Whitestrips throughout North America.
Teva
Teva currently sells Clonidine
Par Pharmaceutical
Actavis commercially launched Fentanyl
Pipeline
AG200-15
The Agile AG200-15 product is a combination hormonal contraceptive patch that contains the active ingredients ethinyl estradiol (an estrogen) and levonorgestrel (a progestrin), both of which have an established history of efficacy and safety in currently marketed combination oral contraceptives. AG200-15 is designed to deliver both hormones at levels comparable to low-dose oral contraceptives.
By delivering these active ingredients over seven days, this product is designed to promote enhanced compliance by patients with a convenient, easy-to-use format. If approved, the patch will be applied once weekly for three weeks, followed by a week without a patch.
Agile designed AG200-15,
MicroCor hPTH(1-34)
MicroCor hPTH(1-34) is a transdermal system designed to use
With a simple one-step application process, short wear time and a favorable pharmacokinetic profile, MicroCor hPTH(1-34) represents, if approved, an opportunity to effectively deliver an improved anabolic therapy and increase patient compliance in the osteoporosis market.
Corplex Tamsulosin
Corplex Tamsulosin is a transdermal patch designed to use Corplex technology to provide controlled delivery of tamsulosin, the active ingredient in the leading once-daily capsule product for treatment of benign prostatic hyperplasia, or BPH, marketed under the brand name Flomax.
By providing a controlled and relatively steady level of drug over an extended time, Corplex Tamsulosin is intended to alleviate the side effects associated with peak blood concentrations of the drug in its current oral formulation and to provide a consistent level of efficacy.
If successfully commercialized, Corplex Tamsulosin could be the only patch available for tamsulosin.
Competition
Companies focused on delivering small molecules transdermally include 3M, Johnson & Johnson, Lohmann Therapies Systems, or LTS, Mylan, Hisamitsu, or Noven, and Actavis.
Companies operating in the microneedle transdermal field include 3M, Zosano, Theraject and Fujifilm.
Several academic institutions are also conducting research in the microneedle field. In addition to microneedle technologies, there are other methods of transdermal delivery under development for biologics, including heat ablation, laser, ultrasound and radio frequency.
Companies developing and manufacturing transdermal systems for biologics include Becton Dickinson, Vyteris, and Zogenix. Some of these companies may be addressing the same therapeutic areas or indications as CORI.
Dividend Policy
No dividends are planned.
Intellectual Property
As of January 31, 2014, CORI held 38 U.S. issued patents and 147 foreign issued patents (which include granted European patents rights that have been validated in various EU member states) and 28 U.S. pending patents and 60 foreign pending patents relating to its Corplex and MicroCor technologies and products.
Of the issued U.S. patents, 21 relate to composition of matter and 17 relate to use or process. Of the pending U.S. patents, 25 relate to composition of matter and 3 relate to use or process. CORI’s foreign patents generally include both composition of matter and use or process claims.
CORI’s issued U.S. patents and patent applications will expire between 2019 and 2034. Some of the issued patents and pending patent applications, if issued may also be eligible for patent term adjustment and patent term restoration, thereby extending their patent terms.
Collaborations
In 2005, the Company entered into a multi-faceted collaboration arrangement with The Procter & Gamble Company, or P&G.
The relationship includes a world-wide license to P&G for the use of certain of the Company’s technologies for products in specific fields in which P&G operates. P&G paid the Company a $3.0 million fee for the license plus additional future milestone payments for each qualifying product that the Company develops for P&G. The Company has received a $2.0 million milestone for the first series of products developed by the Company.
In 2004, the Company entered into an arrangement with Barr Laboratories, or Barr, for four generic products. The Company entered into three separate agreements with Barr, one in 2006 and two in 2007, to develop and commercialize additional products. In 2008, Teva Pharmaceutical Industries, Ltd., or Teva, acquired Barr. Following this acquisition, Teva discontinued four of these development programs.
5% stockholders
Essex Woodlands 55.7%
Adrian Faasse, Jr. 15.0%
Gary W. Cleary and Nobuko Saito Cleary, Trustees of the Cleary-Saito Family Trust U/D/T dated September 4, 1996 13.6%
Barr Laboratories 10%
Peter D. Staple 6.3%
Gary W. Cleary 13.6%
Ronald Eastman 55.7%
Use of proceeds
CORI expects to net $54 million from its IPO. Proceeds are allocated as follows:
$15 million to $18 million for Phase 2 clinical trials for MicroCor hPTH(1-34) and Corplex Tamsulosin;
$15 million to $18 million for scale up of production capability for its MicroCor products;
$5 million to $7 million for formulation and development of its proprietary Corplex products;
$2 million to $4 million for advancement of its MicroCor technology;
$5.2 million for the repurchase of shares of common stock;
any remaining balance for working capital and other general corporate purposes.