Iconovo is currently in negotiations with global pharmaceutical companies regarding the company’s latest developed inhaler platform, ICOpre. The company has engaged the global investment bank Stifel to maximize the value and structure the outlicensing process. BioStock contacted Iconovo’s CEO Johan Wäborg to find out more.

Iconovo has developed four inhaler platforms for the developing of novel pharmaceuticals and vaccines, as well as generic versions of blockbuster inhalation drugs. One of the generic projects is ICOpre, a pre-metered inhaler with the same features as GSK’s well-known inhaler. ICOpre can be loaded with three different drug substances and has a precise dose counter just like Ellipta.

Global interest

At the beginning of the year, Iconovo announced that they have initiated negotiations with an unnamed global pharmaceutical company regarding ICOpre. However, other companies have also shown interest and parallel discussions have thus been initiated, some of which have progressed further than others.

The company sees a need to structure the continued process to optimize the value of a potential license agreement, which they now have engaged Stifel for. Stifel is a reputable global investment bank with extensive experience in leading out-licensing processes and advising on negotiations.

Challenger to Ellipta

Iconovo estimates that the outlicensing process for ICOpre can be completed in the first half of 2024, which means that there is still a good chance for ICOpre to become the first challenger to Ellipta when the patents expire, both in Europe and in the US as the development work continues in parallel with the sales process.

There are five pharmaceuticals on the market that are inhaled with Ellipta – Relvar/Breo, Anoro, Trelegy, Incruse and Arnuity. In 2022, these products generated sales of 4.5 billion USD. Iconovo initially aims to launch a generic version of Relvar (fluticasone furoate and vilanterol) in 2027.

CEO Johan Wäborg tells us more

BioStock contacted Iconovo’s CEO Johan Wäborg to learn more about the possibilities with ICOpre and the collaboration with Stifel.

First of all, what is it that creates such a great interest around ICOpre?

– The Ellipta portfolio from GSK represents the largest future generic business opportunity in the inhalation space. Sales for the portfolio were 4.5 billion USD in 2022 and are expected to increase to 6.8 billion USD in 2027, which is when we can launch the first product in the portfolio. ICOpre is based on a unique dosing principle on the inside, which means that Iconovo can circumvent patents linked to aluminium strips, which gives us a good opportunity to be among the first to launch the product.

»The Ellipta portfolio from GSK represents the largest future generic business opportunity in the inhalation space. Sales for the portfolio were 4.5 billion USD in 2022 and are expected to increase to 6.8 billion USD in 2027, which is when we can launch the first product in the portfolio.«

Now you are working with the out-licensing process, what challenges did you see in managing the process yourself?

– We want to drive the process more competitively and guarantee that different companies follow the same process pace so that we can compare different bids at the same time. Also, we want to ensure that we do not get late strong bids or defections that can harm the ability to go back to other stakeholders. Running an official process with an investment bank also ensures that the management of various partner companies realizes that they must stand by their bid.

– You can liken it to using a hungry broker that get the different stakeholders to bid higher. We find it very difficult to broker such a process ourselves. It is sometimes better with a knowledgeable third party.

»You can liken it to using a hungry broker that get the different stakeholders to bid higher. We find it very difficult to broker such a process ourselves. It is sometimes better with a knowledgeable third party«

Why did you choose Stifel as your partner for this process?

– We know Stifel well and they have a good reputation in the industry. They have recently bought Torreya Partners who have strong contacts in the generic industry where they have led lots of processes. We feel that with them as a process partner, we can reach out with a strong message at the highest management level.

You write that you want to maximize the value of the deal. In what value range is a potential license agreement for ICOpre?

– Unfortunately, we cannot go into this as negotiations take place under confidentiality and we do not yet know which company will win the process. The ICOpre project covers a portfolio of products in a completely unique complex inhaler, so it is important for us without a doubt.

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