More on SYN
Roth Summary
Part I:Roth Presentation of Synthetic Biologics 3-11-2014:
It begins by “this company has the backing of a very successful health care investor by the name of R.J Kirk.”
Jeff Riley: CEO of SYN. Market Cap around $150 Million give or take. We have a variety of products in the clinic. Jeff runs a hedgefund and they are an RJ Kirk company. They have an outstanding team.
We have a pretty good feeling about upcoming results.
Product Pipe:
IBD drug
C. Diff, Whooping Cough
Programs with Intrexon
Estriol – hormone produced by placenta in third trimester of pregnancy. 20-25 years ago they discovered the inflammatory properties of this. It lasts 3 months. Phase I was so successful that they have $8 million of donations that funded the entire program and have not spent a dime of their own money.
January 24th, was the last patient.
Copaxone combined with Estriol.
Market is $14 Billion Dollars. It is an undertreated market.
SYN management decided to choose Anti-Infective drugs specifically to focus on. They go after a Sniper Approach to a pathogen specific biologic approach.
The microbiome has come to the forfront of medicine…90% of our bodies are made up of Bacteria....most have positive roles. Antibiotics have wiped our Microbiome out.
2 Years ago this space was not very good, but the GAIN act signed in 2011 was the Orphan Drug act for new Antibiotic Discoveries. Now there are a variety of deals accomplished for newer antibiotics. Cubist the leader is making acquisitions right now.
1 in 4 chance of having a successful drug if it works in the petree dish.
Acquired from Cedar Sinai….SYN is targeting bugs in the small intestine and large intestine…these bugs cause bloating and constipation. SYN010….they measure methane gas in the breath and the drug is administered for once a day until symptoms reside. The markets are quite large and underserved. So they have two markets: one of diagnosis and one of treatment.
Part II:
The constipation type of drug is 40% of the IBS market which is huge.
Ironwood and Forest are controlling this market right now, but it is not very well treated with their laxatives.
Methane Gas slows the digestive process. This is a Multi Billion Dollar opportunity.
C. Diff Drug: Most are acquired in the hospital with the use of Antibiotics because it wipes out of positive microbiome. This is a highly contagious disease with 30,000 people a year dying. The current treatment is treating with Stronger Antibiotics which doesn’t make sense. SYN approach is to swallow a pill which goes straight the Large Bowel and does its job. The drug breaks the antibiotics down. They know that this drug works. So now they will get into a Phase I-b this year. In 2015 the hospitals have to absorbed these costs…so they believe that EVERY hospital will use this to save big $$$ for the hospitials. The pill will cost $25 and they are working with the CDC on this program. Multi-Billion opp here.
Whooping Cough Drug: Baby Baboon results coming soon. The toxins from this stay in the tracheal area for a long time. SYN has a drug that binds with this toxin and detoxifies it so the body can eliminate it.
Intrexon Collaborations:
We don’t know if these are going to work yet.
IBS – trying to eliminate ALL of IBS…this is just beginning stage.
Burn Rate: $1 Million a month.
Volume has increased significantly.
$15 million market cap increased 10 fold to $150 million.
NEWS DATA:
A plethora of data expected this year.
Baby Baboon
Multiple Sclerosis Topline
C.Diff
Phase II or even III after talks with FDA on IBS at least a phase II is
Sept to Oct: More MS Data….the Deep Data
C. Diff – IND filing, the manufacturing and then Phase I-a to Phase I-b.
Questions:
As investors looking at your company…how do you think investors view the priority driver of shareprice?
Jeff: It is a combination. The MS is the real driver. The rest of the programs are “real sexy”.
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