Promore Pharma

Research note


Promore Pharma: Q1-report undramatic

Earlier this afternoon, Promore Pharma released their Q1 report. As expected, no significant news were reported. The company is working on starting the clinical trials with PXL01 and LL-37 during 2018.

Although no new significant events was reported in the Q1 release, 2018 has started with some news items of importance for Promore. Earlier this year, Promore announced that Cellastra, the intended US-partner, did not exercised their option to fund and commercialize PXL01 in North America (see note here). The implication is that Promore will now have to find another funding source for the North American region, either by raising more capital and sponsor the study themselves or by signing another collaboration agreement. The European/Indian phase III plan will not be affected by this event. With regard to PXL01 and the upcoming phase III study, Promore has also regained the global manufacturing rights from PharmaResearch Products (PRP). (See note here

Another news event of importance is Promore's expanded out-licensing agreement for PXL01 to PRP, which will develop PXL01 for use to prevent fibrosis after spinal surgery. The surgical procedure is used in the treatment of degenerative disc disorder, a potentially large market opportunity. Promore have rights to milestone payments and double-digit royalties from global sales. (See note here

Looking ahead, we expect the activity to increase and more updates regarding the clinical development and studies during 2018. 

Financially, the net result for the period was SEK -7,9 (-3,3) million. Cash flow from operations and investing activities was -8,5 (-2,7) million. At the end of the period, Promore had a cash balance of about 54 million. As clinical trial preparations are increasing in activity, we believe the burn rate will increase. 

Download our latest Research Report from 2018-02-08

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