Iconovo develops complete inhalation products, i.e. both inhalers and associated dry powder formulations. The inhalation products are primarily intended for generic products for the treatment of asthma and COPD, but the company also has its sights set on innovative inhalation drugs such as inhaled oxytocin and vaccines.
The company has developed four product platforms – ICOres, ICOcap, ICOone and ICOpre – which are linked to five different customer agreements, so-called royalty agreements. The goal is to enter into two additional customer agreements in 2021 according to the year-end report and the previously communicated business objectives.
One of the better quarters in Iconovo's history
In 2020, Iconovo had a good pace in project deliveries and this was also reflected in the sales figures. In the fourth quarter, Iconovo had sales of SEK 7,7 million, which is the highest quarterly sales in three years. The sales figures in the fourth quarter came from, among other things, large project deliveries in customer projects with Amneal and Intake.
For the full year 2020, Iconovo achieved a 50 percent increase in turnover from SEK 11,7 million in 2019 to SEK 17,8 million in 2020. After these good figures were presented, Iconovo was able to announce that the company's CEO Johan Waborg has purchased shares in Iconovo worth SEK 1,1 million at a price of SEK 55 per share.
Two new customer agreements
In 2020, Iconovo entered into two new customer agreements, one with BNC Korea and one with Monash University, both of which are expected to create significant value for Iconovo. The license agreement with BNC Korea concerns the manufacture and sale of generic versions of Novartis Ultibro and Seebri in ICOcap in an Asian territory with 2,7 billion inhabitants.
The agreement with Monash University, signed in December 2020, grants Monash the license to commercialize ICOone with inhalable oxytocin. This is a groundbreaking agreement for Iconovo for several reasons according to Johan Wäborg.
Raises the sustainability aspect in the report
The project with Monash is Iconovo's first project in innovative inhalation drugs, i.e. which is not a generic inhalation drug.
According to Wäborg, inhaled oxytocin has the potential to save thousands of lives. Every year, 75 women die from postpartum hemorrhage, most of which occur in rural areas of Asia and Africa. In economically stronger regions, oxytocin injections are used to counteract the bleeding, which requires transportation and storage in an unbroken cold chain. If Iconovo and Monash instead succeed in developing an inhaled oxytocin, the problem of cold storage will be solved, while at the same time eliminating the risks of infection and hazardous waste.
Furthermore, Wäborg believes that the project with Monash and Iconovo's other operations have a strong connection to the UN's sustainable development goals. The company focuses mainly on three global goals – Good health and well-being, Decent working conditions and economic growth and Fighting climate change.
Orest Lastow sees potential in ICOone
Iconovo sees an increased interest in similar projects to the one with Monash, i.e. where substances are suitable for administration with the disposable inhaler ICOone. Iconovo has an idea of using ICOone for an inhalable vaccine, which Dr. Orest Lastow, CTO and founder of Iconovo, recently told more about in MEDTECH Outlook.
Read Orest Lastow's article 2021 – Search for vaccinations without cold storage in MEDTECH Outlook
ICOpre constitutes a large part of the development costs
According to the report, the company's development costs amounted to SEK 4,85 million in 2020. A relatively large part of the cost stems from the development of ICOpre, Iconovo's largest investment to date. In 2020, Iconovo succeeded in developing a functional ICOpre inhaler with several injection-molded parts. The goal now is to complete the development of ICOpre so that a structured sales process can take off.
We will see the finished version of ICOpre in May when Iconovo plans to present the inhaler at the congress. Respiratory Drug Delivery. Iconovo will then develop five powder formulations for ICOpre, which are expected to be fully developed by the end of 2021. The plan is for these powder formulations to be developed into generic versions of the products in GSKs Ellipta portfolio.
High expectations and increased commercial focus in 2021
After a very active fourth quarter, Iconovo enters the new year with accounts receivable of SEK 8,9 million. At the end of 2020, Iconovo had SEK 61,7 million in cash and is therefore well financed for 2021. According to CEO Johans Wäborgs presentation in connection with the year-end report A lot can be expected from Iconovo in 2021. The company is increasing the pace of business development and has set a high goal of entering into two new deals in 2021. To achieve this goal, Iconovo has been strengthened with several key people to become a company with 27 employees. The new recruitments will contribute to a broadening of skills, increased capacity in current projects and an increased attractiveness for more customers and projects.
2021 will also be a year when Iconovo will deliver final deliverables in several projects, which means that the customer can initiate studies. A bioequivalence study will be initiated in the project with Amneal in Q2 and it is expected to be able to present the results for the Symbicort generic in Q3. In 2021, Iconovo will also initiate a Phase I study in the oxytocin project with Monash University and complete the development work in the projects with BNC Korea and Intas so that they can begin studies in 2022.
Iconovo is now one year closer to launching its first products on the market. The goal is to launch the first product, a generic version of Symbicort in ICOres, on the European market in 2023.
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