Medtech company Iconovo develops complete inhalation products – inhalers combined with dry powder formulations. The company's inhalation products are primarily intended for the treatment of asthma and chronic obstructive pulmonary disease (COPD), two very common respiratory diseases.
Over the years, Iconovo has developed a broad product portfolio that today includes four inhaler platforms, which give the company a strong position in a growing global market. Three of the platforms are already fully developed and available to be adapted for the administration of different inhalation powders: ICOres, ICOcap and ICOoneAll have made new progress in the first half of 2020 despite an ongoing pandemic that has disrupted the global economy.
Three fully developed platforms
Iconovo's reservoir-based product, ICOres, was developed as a generic version of AstraZeneca Symbicort Turbohaler (budesonide/formoterol), while ICOone is the company's single-use inhaler. Both have seen their IP protection strengthened in both Sweden and Europe during the year, and as recently as June, ICOres received a so-called Intention to Grant-Notice from the Chinese Patent Office. Read more.
At the same time, ICOcap, the company's capsule inhaler with the same function and similar performance as Novartis dry powder inhaler Breezhaler, has received the CE mark and can now be purchased from Iconovo's manufacturing and distribution partners Stevanato Group for use in clinical trials. The Italian partner recently announced that it intends to invest close to EUR 400 million in manufacturing and R&D programs for drug delivery systems, part of which will be allocated to the manufacturing of ICOcap. The announcement came shortly after Stevanto established a website fully dedicated to ICOcap to increase visibility for Iconovo's product.
Regarding ICOcap, Iconovo announced as recently as yesterday that they have signed a license agreement that gives BNC Korea Co., Ltd. exclusive rights to use Iconovo's know-how to manufacture two generic formulations based on Ultibro Breezhaler (indacaterol, glycopyrronium) and Seebri Breezhaler (glycopyrronium). The agreement also grants BNC Korea Co Ltd the right to market, sell and distribute these formulations together with ICOcap in Korea, Japan, China, Taiwan, Russia, the CIS countries and the Southeast Asian countries (including Turkey). The deal has a value of EUR 550 of which EUR 000 is to be paid as an access fee.
Developing new platform
In late 2019, Iconovo announced its plans to invest in a new inhaler platform similar to GSK Ellipta, a product segment expected to dominate the inhalation market over the next ten years. The new platform, ICOpre, represents a major business opportunity for Iconovo as analysts estimate that the Ellipta segment will be worth at least USD 4,5 billion in annual sales by 2023.
BioStock has previously described the potential for ICOpre, and Iconovo has recently released a information document which addresses market opportunities, patent situation, product features and partnership strategy for ICOpre.
Transition phase for Iconovo
The development of the new inhalation platform coincides with Iconovo's transformation from a start-up company to one that focuses more on growth and sustainable profitability with secure profit margins through growing royalty revenues.
The transition has included changes in the company management. In April, Johan Waborg as CEO, replacing Iconovo's co-founder Orest Lastow, who has instead taken on the role of CTO to better utilize his expertise in the development of dry powder inhalers such as ICOpre.
Johan Wäborg, who was CEO of Actelion Pharmaceuticals in the Nordic and Baltic countries when the company was acquired by Janssen Pharmaceuticals for USD 30 billion, brings with him solid experience from international strategic business development with strong growth in listed companies. Johan Wäborg intends to strengthen the company's development and communication strategy with a focus on investors, and increase efforts in commercialization of Iconovo's four inhaler platforms.
»I have a broad commercial background with experience in pharmaceutical marketing, company establishment and business development. I have led teams and organizations through both good and bad times with successful growth results. It's about people, energy and focus. Work should be fun, because if it is, you will be engaged in your work and can basically achieve anything« — Johan Wäborg, CEO of Iconovo
BioStock caught up with Iconovo's new CEO for a deeper insight into how he will lead Iconovo.
Johan Wäborg, first of all, what was your first reaction when you were offered the CEO position at Iconovo?
– I became enthusiastic because I quickly realized that this is a world-class company with great potential in its offering and business model. I also believe that the culture at Iconovo, and the people I have met here, really match my own values.
What is it about the company that inspires you and made you accept this new position?
– I was inspired and convinced by a number of things!
– First of all, I am very impressed by the unique expertise of the individuals working at Iconovo. Few people in the world can do what our team does. We design and build an inhaler and then adapt the formulation of the drug powder. In parallel, we optimize the inhaler and the drug to work perfectly together. This integrated development process is Iconovo's core competence.
– Secondly, the scalable business model is of utmost importance. Iconovo is essentially selling the license for a customer to use one of our four devices with an optimized drug component in a certain territory. Thus, it is a platform model that we can scale up and sell flexibly in several ways. As a commercially minded person, this type of playing field really motivates me!
– Thirdly, the market opportunity and the relatively low risk level are very attractive in my eyes. Compared to a startup company in biotechnology or pharmaceutical development, which normally only has “one leg” to stand on, i.e. a project or a molecule, Iconovo has multiple platforms and can do multiple deals with each platform. Offers can include generic substances but also innovative medicines. For example, for generic dry powder inhalation products, the risk of failure is lower and the main pitfalls are the risk of delays. While other companies either “win or lose”, we have much more certainty in our model.
What connection did you have to Iconovo before you became the company's CEO?
– I had heard about Iconovo and some talented people who came together when AstraZeneca closed here in Lund. This stuck with me because I actually did a few weeks of summer internship at Astra in connection with my studies for a master's degree in chemical engineering just up the hill from here, at LTH.
How will your previous experience contribute to Iconovo's future growth?
– I have a broad commercial background with experience in pharmaceutical marketing, company establishment and business development. I have led teams and organizations through both good and bad times with successful growth results. It's about people, energy and focus. Work should be fun, because if it is, you will be engaged in your work and can basically achieve anything.
You started as CEO in April, has it been a smooth journey so far?
– It's been three months already – time flies! I've had a very good induction period and I think my previous experience with respiratory diseases helped me get into the job quickly.
This is not your first role as a top executive in a life science company, but is it your first time in a medtech company developing dry powder inhalers?
– I have not led a medical technology company before, but I have driven innovative drug development at Actelion and started an international generics company with Marklas BVI see many similarities in Iconovo to my previous experiences and many of the key business principles are the same.
If so, what challenges do you expect to face and what are the key skills you bring to the table?
– A classic challenge for all innovative startups is to transition from product innovation to commercialization, and Iconovo has already come some way in this regard. Part of my ambition is to focus hard on selling what we have and to ensure that our existing partnerships reach the finish line within a reasonable time.
Looking back on the first half of the year, what would you say is Iconovo's most important milestone achieved so far in 2020?
– There has been intense activity in the lab and persistent interactions with both new and existing customers. A major achievement resulting from the hard work was the CE marking of ICOcap.
Speaking of ICOcap, Iconovo has just signed a regional licensing agreement with BNC Korea Co Ltd, which gives ICOcap, along with two generic formulations, widespread market coverage in Asia. Can you tell us more about the consequences of this agreement?
– We are now entering into our fourth royalty agreement with a dynamic regional customer in a territory of over 2,7 billion people. This is our first agreement for formulations for ICOcap, which validates our technology and will generate sales for both our formulations and the ICOcap inhaler. The agreement is also for two products, making it “twice” as good. This increases the opportunity to also find customers for the remaining territory in Europe and Latin America.
As Iconovo enters a phase focused on growth, what will be the most important aspects of this transition, and how do you plan to manage them?
– As we now embark on our growth journey, it will be important to establish a long-term strategy. This way, we can also develop strategies in the shorter and medium term, thereby focusing our activities in business areas that bring us closer to our future goals.
What will be the company's immediate focus in the near future?
– There are many aspects to navigate, but we have sailed before. An absolutely key issue is ensuring that we have a team of energetic and competent people. Our employees are our most important resource and together we can achieve whatever we set out to do.
Finally, what is your long-term vision for Iconovo and what is your strategy for implementing it?
– We are currently working on our long-term strategy for Iconovo, so I will have reason to come back to that issue. But for me the short-term strategy is clear – it is about commercial implementation.
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