THIS IS AN ADVERTISING PROMOTION
Infectious diseases have, over the last decade, been a relatively under-funded area of pharmaceutical research with ‘Big Pharma’ deprioritising R&D in this space.
But then an unprecedented global pandemic brought about devastating human and economic damage, the impact of which will take a generation to overcome. For the pharmaceutical and biotech sectors, it has brought about extensive refocusing on infectious diseases, especially for those with respiratory and inflammatory conditions.
AIM-quoted Poolbeg Pharma (POLB:AIM), a clinical-stage, infectious disease pharmaceutical company, is uniquely placed to target this substantial infectious disease market, which is expected to grow to $250 billion by 2025.
Founded in March 2021 as a spin-out from Open Orphan, it listed in July in an oversubscribed £25 million raise. CEO Jeremy Skillington alongside Non Exec Director of Poolbeg, Prof Luke O‘Neill, was part of the Inflazome team, which sold to Roche in 2020 for €380 million upfront plus downstream milestones. Alongside Open Orphan (ORPH:AIM) co-founders Cathal Friel, Ian O’Connell and Carol Dalton, Poolbeg’s Board and Executive team have extensive experience in creating value for shareholders and have completed 4 health sector IPOs.
A PROFITABLE PROPOSITION
Poolbeg has a capital light business model which enables it to develop assets to be Phase II ready quickly, with minimal investment, where they can be acquired by big pharmaceutical companies for significant upfronts and milestone payments. It aims to develop drugs for infectious diseases by both in-licencing drug candidates (with minimal upfronts) and also by repositioning existing drugs that have been developed for other diseases. This is quicker and cheaper as these existing drugs have already passed the safety stage in humans, the Phase I stage.
In an approach that is different to other biotech companies, Poolbeg will allocate a maximum of £5m development costs per drug candidate before licencing / selling to Big Pharma. These licencing opportunities to Big Pharma often bring returns of £100 million plus with significant milestone payments, a good return on a £5m investment. Full Phase II studies (i.e. in patients with disease) can cost around £20 million, however Poolbeg Pharma will only develop drugs to a Phase Ib or IIa stage, which involves small and quick in-patient studies. Once completed, these assets can be successfully sold or licenced to Big Pharma to develop further and commercialise.
A UNIQUE POSITION IN THE MARKET
The key differentiator to other companies developing drugs in the infectious disease space is Poolbeg’s access to a bank of unique data and 300,000 biological samples gathered over 20 years of infectious disease challenge studies in humans including influenza and Respiratory syncytial virus (RSV) amongst others. This data, via an Open Orphan subsidiary, hVIVO, is a very valuable asset.
These data and samples, has and will identify validated infectious disease drug candidates before spending anything on development. The traditional biotech model can take up to 5 years and tens of millions just to identify drug candidates. Poolbeg’s method has already proven to be fruitful, with its first clinical asset, POLB 001, identified using this data. The company plans to partner with AI companies to accelerate this process while reducing the cost. Analysts view POLB 001 as a “very exciting and potentially highly valuable” drug that has been repositioned to treat severe influenza and potentially other virus-induced respiratory diseases.
KEY DRIVERS FOR LONG-TERM GROWTH
Poolbeg’s capital light and early clinical data approach means it expects to be able to monetise five or six assets in the same cost and timeframe as the conventional biotech approach takes to develop one. Combining the unique database access with AI analysis platforms will also dramatically increase the success of repositioning drugs into this new disease space.
Poolbeg may also opportunistically in-licence infectious disease drug candidates in development by other biotechs which have clear potential and synergies with Poolbeg’s expertise and areas of focus. Along with POLB 001, Poolbeg intends to continue expanding its portfolio, identify vaccines from the vaccine discovery platform and commencing clinical studies for other assets.
FOCUSED ON SCALABLE PROFIT
Poolbeg’s focus on acute infectious diseases means trials can be conducted quicker and cheaper than chronic diseases such as cancer and rare diseases, which can take years. The renewed interest in treating infectious diseases following the COVID-19 pandemic means that the small amount of human trial data generated by a Phase Ib or Phase IIa study will be enough for Big Pharma to be interested in early licencing deals. Particularly given the current trend in Big Pharma for sourcing clinical candidates via in-licencing, acquisition or co-development along with in house discovery.
The company has a scalable platform for growth with a proven, streamlined method of identifying drug and developing drug candidates, access to key data to drive that platform, and well-protected intellectual property. Poolbeg’s experienced management team have built revenue generating businesses and achieved significant exits, so with it’s Phase II ready asset and imminent AI deals, the company intends to capitalise on the immediate $800m market for influenza drugs and that potential $250 billion market for infectious diseases post-Covid.
DISCLAIMER: This article was written by Poolbeg Pharma and published by Shares under a commercial agreement. It is not a recommendation to buy or sell the shares. The article originally appeared in Shares’ Spotlight report on 25 November 2021.
