Iconovo is a Lunda-based company that develops complete inhalation products, i.e. both inhalers and drug formulations. The company has three areas of operation – development of new original drugs, development of generic drugs, and sales under its own management in the Nordic region through the subsidiary Iconovo Pharma.
Iconovo is currently working on building an organization of a handful of people who will be responsible for Nordic marketing in the subsidiary. With its 27 million inhabitants, the Nordic region is a large market where, for example, Symbicort and its generic counterparts are sold for around SEK 800 million annually. Through Iconovo Pharma, the company wants to give the Nordic market access to its own developed products and at the same time supply the market with other generic products with good potential.
Generic equivalent to Symbicort in focus
The first proprietary product launch via Iconovo Pharma is expected to be ICOre's budesonide/formoterol, a generic equivalent to AstraZeneca bestseller Symbicort Turbohaler for the treatment of asthma and COPD. So far this year, Symbicort sales have exceeded $1,9 billion, according to AstraZeneca's latest interim report.
AstraZeneca's patent for the combination of budesonide and formoterol expired several years ago and Iconovo's inhaler ICOres is based on proprietary technology that does not infringe on the original manufacturer's patent.
The development of ICOres budesonide/formoterol is being carried out in collaboration with the American generic company AmnealLast year, Amneal transferred the rights to sell the product in the Nordic region to Iconovo, which was the starting point for Iconovo Pharma.
Iconovo Pharma – an important part of the financial goals
Having seen positive developments in the collaboration projects, Iconovo updated its financial targets earlier this year. The company expects to achieve sales of SEK 250 million by 2027, of which one third is expected to come from Iconovo Pharma.
Read more about the financial goals in BioStock's article Iconovo raises the bar in its financial goalsIn the interview, the CEO mentions Johan Waborg that they set up the systems required to conduct pharmaceutical sales in the Nordic region, such as quality systems for pharmaceutical distribution, adverse reaction reporting systems and wholesale licenses. The goal is to establish the systems needed so that the company is ready for pharmaceutical sales in 2024.
Interview with Director Business Development
To find out more about Iconovo's focus on pharmaceutical sales in the Nordics, we contacted Fredrik Radencrantz, Director Business Development at Iconovo since June 2022.
Fredrik, could you tell us a little about your background and why Iconovo attracted you?
– Iconovo has innovative products, high competence, wonderful colleagues and exciting growth potential. And I get to work on what I enjoy most – meeting customers, working with sales and business development full-time. I have previously worked as CEO at a smaller research and development company in medical technology. After 5 years as CEO, I wanted to work more with business development and sales at a smaller company in pharmaceuticals and/or medical technology.
»Iconovo has innovative products, high competence, wonderful colleagues and exciting growth potential«
You are now in full swing with the development of the subsidiary Iconovo Pharma. Why do you believe that Nordic pharmaceutical sales under your own management is a winning concept?
– Through Iconovo Pharma, we have the opportunity to be close to the market in a completely different way than now. The Nordic region is a complex market with several different systems for procurement of generics. It is therefore not obvious for international companies to prioritize the Nordic region. We want to ensure that our home market has access to the medicines that Iconovo has helped develop.
– We will have the opportunity to optimize the sales of our proprietary product; ICOres budesonide/formoterol. It is a combination of bronchodilator and anti-inflammatory drugs for the treatment of asthma and chronic obstructive pulmonary disease (COPD). With this as a foundation, we intend to build a product portfolio that provides economies of scale, positive cash flow, increased sales in an independent company with a separate organization that focuses on the Nordic region, while at the same time Iconovo Pharma benefits from the parent company's established staff functions and broad expertise in inhaled medications.
– Iconovo Pharma's direct contact with the markets provides invaluable knowledge and experience that will benefit the parent company in our continued product development – and thus and ultimately also our customers in a global market.
Could you briefly describe how you will go about establishing Iconovo Pharma in the Nordic pharmaceutical market?
– The Nordic region already has established and well-developed systems for generics, which facilitates the establishment of Iconovo Pharma. This has resulted in a high share of generics in the Nordic market, compared to many other markets. In Denmark and Norway, the majority of generic sales are governed by established quotation procedures that can extend over several months and in some cases 1-2 years. Sweden and Finland are more similar and are not governed by the same quotation procedure. After all, the Nordic region can be considered quite homogeneous as all markets promote generic products instead of original products, for cost-saving reasons.
»The Nordic region already has established and well-developed systems for generics, which facilitates the establishment of Iconovo Pharma.«
How are you doing in the development of Iconovo Pharma and what is your role in the project?
– A strict regulatory framework must be followed when establishing Iconovo Pharma. It takes time to obtain permission for wholesale trade and deliveries of human pharmaceuticals, to get the organization and all documentation in place, to obtain permission for in-licensed products and to solve the practicalities of, for example, logistics, warehousing, deliveries and the like via agreements with selected partners.
– At the time of writing, we are using external consultants to handle the licensing and registration of medicines in each market. This is the most cost-effective and practical option before the dedicated organization is in place. I have a small, but rewarding, role in the big picture. I engage in dialogue with the generic companies, review their product portfolios and analyze which products have potential in the Nordic market. Ultimately, it is Iconovo's board and management team that decide which products we will ultimately include. They have extensive experience of this type of sales in the Nordics and are careful to ensure that the selected products fit our profile, have attractive sales potential and provide the market with generic products that "make a difference".
»Ultimately, it is Iconovo's board and management team that decide which products we will ultimately include. They have extensive experience of this type of sales in the Nordics«
What will Iconovo Pharma's product portfolio look like?
– Over the next few years, the product portfolio will be built up with complex generic products with high potential. Our ICOres budesonide/formoterol, the generic equivalent of Symbicort for the treatment of asthma and COPD, will become Iconovo Pharma's flagship and form the foundation of the product portfolio.
Which products in your development portfolio do you have sales rights for in the Nordics?
– Unfortunately, we are not able to disclose exactly which products we have currently negotiated. We are in dialogue with several generic companies and carefully select pharmaceutical products that add value both for us and for the end user. We will likely include drugs used to treat asthma, chronic obstructive pulmonary disease (COPD), idiopathic pulmonary fibrosis (IPF), and pulmonary arterial hypertension (PAH), but at the same time we are not averse to including drugs for other indications provided that they meet our requirements for growth potential, long-term sustainability and return.
Finally, what are the biggest advantages, but also the challenges, on the way to the goal of establishing yourself in the Nordic market?
– One challenge is that we are starting from “zero” and have to both convince generic companies that we are an extremely suitable partner in the Nordics, and build a business from scratch. Then it is clear that there are certain generic drugs that we would have liked to include in our portfolio, but where the rights already exist with someone else. We will also have access to proprietary products, which makes us less vulnerable than pure generic companies.
»We will have the opportunity to optimize the sales of our own products in our “home market”, while at the same time establishing an attractive product portfolio with hand-picked products from generic companies that suit Iconovo Pharma and the Nordic market.«
– Another important advantage is that we will have the opportunity to optimize the sales of our own products in our “home market”, while at the same time we can establish an attractive product portfolio with hand-picked products from generic companies that suit Iconovo Pharma and the Nordic market. The Nordic market is well adapted and promotes generic medicines, which facilitates our establishment in the Nordic region.