Iconovo develops complete inhalation products, i.e. both inhalers and associated dry powder formulations. One of the company's inhalation products is ICOres, a multidose inhaler with two separate reservoirs. The inhaler also provides visual feedback on the number of doses remaining and that the dose has been inhaled correctly.
Development project together with Amneal
Together with the American pharmaceutical company Amneal Iconovo is developing a generic Symbicort in ICOres. The development project is now entering its final phase and Amneal has begun to build up commercial manufacturing.
Iconovo recently announced that the agreement with Amneal has been expanded to include the valuable markets of the US and China. The agreement previously covered sales in Europe, Canada, Australia, Russia and some smaller emerging markets.
Extended agreement doubles rloyalty opportunities
The extended agreement will allow Amneal to sell and market a generic ICOres Symbicort in markets covering approximately 90 percent of the total Symbicort market. The extended agreement will more than double the prospects for future annual royalty income to SEK 110-220 million (USD 13,2-26,4 million). From a financial perspective, the extended agreement with Amneal is an important event for Iconovo, according to CEO Johan Waborg:
»We are very pleased to have been able to extend our agreement with Amneal. It is a very strong and positive signal that Symbicort in the ICOres inhaler is a product with great international potential. Financially, this is an important event for Iconovo« – Johan Wäborg, CEO of Iconovo
Major investment in the Nordic region
With the new agreement with Amneal, Iconovo acquires the license to sell generic versions of Symbicort in the Nordic region. According to the company, the Nordic market for Symbicort amounted to SEK 800 million in 2020, which means that there is a large market potential for Iconovo/Amneal's generic version of Symbicort in ICOres. Iconovo estimates that they can reach a market share of 15-20 percent, which could generate revenues of between SEK 80 and 100 million per year, according to the company.
In connection with this, Iconovo launches the pharmaceutical division Iconovo Pharma who will carry out marketing and sales of the generic product in the Nordic countries.
Iconovo's CEO comments
BioStock contacted Iconovo CEO Johan Wäborg to learn more about the expanded agreement with Amneal, as well as the newly launched pharmaceutical company Iconovo Pharma.
To begin with, how significant is the agreement with Amneal regarding ICOres?
– It is a very significant agreement in many ways. It is the closest of our projects to launch, which is planned to take place in 2023 in Europe. In addition, Symbicort is a large product globally with approximately USD 3 billion in sales, so maximizing global coverage is of great importance and increases the potential for our future royalty income.
You have also taken over the rights from Amneal to market and sell ICOres Symbicort in the Nordic market. What is behind this decision and what does it mean for Iconovo's long-term strategy in the Nordics?
– We have a unique position in the global inhalation market and possess extensive knowledge in the area of dry powder inhalation. We believe that establishing our own sales based on that position is a winning concept. Selling pharmaceuticals in selected markets is a way to maximize our share of the value chain and thus get even greater value from our innovation.
– I have worked in pharmaceutical sales and also led Nordic pharmaceutical companies for most of my working life, it is my home turf, so expanding our strategy in this way feels obvious to me.
What's on the agenda for the rest of 2021?
– We will continue to deliver against our communicated goals, which includes developing an ICOpre with five ready-made formulations and continuing to deliver on the projects and support the projects that enter clinical studies this year.
– We also have a goal to enter into two new agreements this year. We already entered into a first agreement with ISR in March for an inhaled Covid-19 vaccine in ICOone. The expanded agreement with Amneal is extremely important and partly new, but we will of course continue our pursuit of even more agreements this year.
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