Xspray Pharma

Market Cap 1,165.0M

Xspray Pharma has a very special business model: creating generic drugs that can be launched on a semi-exclusive basis along with the branded drug. The strategy is a high risk-high reward proposition which, if successful, can be highly profitable for investors in the near-term. The basis of the strategy is that Xspray has invented tools and a scalable technology that enables them to create fully amorphous generics or improved generics that don’t infringe on secondary patents, such as other chemical forms or product patents. After the primary substance patents expire, Xspray can launch their generic alongside the branded drug and create a market duopoly. Xspray has worked on perfecting their business model since its inception in 2006, and their expertise has led them to focus solely on drugs called protein kinase inhibitors (PKIs), selective small molecule drugs that are mostly used in cancer treatment. The enabler of the business model is a technology platform called RightSize, which is based on super critical fluid extraction (SCF) and fitted with a proprietary nozzle that allows for scalable production of amorphous drugs, overcoming a significant barrier for the industry. By focusing on generics, only smaller clinical trials in healthy volunteers are needed and Xspray can run the business efficiently. Three PKIs have been identified as the initial product candidates, where two products (HyNap-Dasa and HyNap-Sora) could reach the US market by 2021 and the third (HyNap-Nilo) by 2024. Additional projects are in the early stages of development and, in total, Xspray aims to have seven product candidates under development in the near-to-mid term, showing the flexibility of their platform and business model. Xspray’s end goal is to license or sell the products prior to market launch.

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