Biotech Values

[maverick_1]

OMER's OMS721 (One of TWELVE Programs): re ALXN's Soliris as MOST EXPENSIVE Drug and NO competition:

BACKGROUND:This is OMER's Pipeline:
From: http://www.omeros.com/pipeline/pipeline.htm

Omeros is developing a deep pipeline of small-molecule and protein therapeutic candidates targeting inflammation, coagulopathies, and disorders of the central nervous system. Our twelve programs include those focused on inflammation, coagulopathies, and multiple CNS disorders, as well as our three platform programs: PharmacoSurgery®, antibody and G protein-coupled receptor all targeting both large-market and exciting orphan opportunities.

Products from our proprietary PharmacoSurgery platform, which yielded our first commercial product Omidria™ (phenylephrine and ketorolac injection) 1%/0.3%, for use during cataract surgery and other lens replacement procedures, are designed to improve the clinical outcomes of patients undergoing arthroscopic, urological, and other surgical and medical procedures.

Our MASP program is in clinical development to treat thrombotic microangiopathies, including atypical hemolytic uremic syndrome, and a wide range of inflammatory disorders.

Our two PDE10 clinical programs for the treatment of schizophrenia and Huntington's disease, our clinical program for the treatment and prevention of addictions and compulsions and our preclinical programs targeting other CNS disorders and coagulopathies further strengthen our pipeline and help create multiple opportunities for commercial success.

Our GPCR platform is making available an unprecedented number of new GPCR drug targets and corresponding compounds to the pharmaceutical industry for drug development, and our antibody platform enables the discovery of novel, high-affinity monoclonal antibodies.

For each of our product candidates and programs, we have retained all manufacturing, marketing and distribution rights.

For reference:
From Wikipedia Alexion

The drug costs roughly $450,000 a year, and is considered the world's most expensive drug.[4][6] The price of the drug is so high that very few individuals can pay the price. As a result, Alexion hires public relations firms to help families institute campaigns to pressure their governments to pay for the drug. Alexion is putting pressure on to governments to receive their payments from the public purse. The prices charged have a very high margin above the cost price. In addition, much of the research for the development of Solirius originates from publicly funded universities. There is an ethical question as to the pricing of the drug and the ethics of the drug manufacturer. Alexion is well on the way to developing a second very high price and high margined drug. [25]

From recent Motley's Fools article:
http://www.barchart.com/headlines/story/10162317/the-5-most-expensive-drugs-in-the-world-in-2015

2. Soliris: $700,000 wholesale cost per year
Alexion Pharmaceuticals' Soliris has actually been the most expensive drug in the world for years, so seeing it fall out of the top spot may come as a surprise to many. Within the U.S. Soliris had a wholesale cost of nearly $537,000 last year, but the Patented Medicines Price Review Board notes that Soliris' annual cost in Canada can be as high as $700,000 per patient.
Source: Alexion Pharmaceuticals

Soliris has two current indications: as a treatment for paroxysmal nocturnal hemoglobinuria (PNH), and as a treatment for atypical hemolytic uremic syndrome. Both are very rare indications with no current competition, thus the ability of Alexion to command such a high price tag for Soliris. More importantly, patients with PNH often live for 10 to 15 years following their diagnosis, so despite a small patient population, Alexion has a source of long-term recurring revenue with Soliris. After delivering $2.2 billion in revenue in 2014, Alexion is projected by Wall Street to more than double to $5 billion in 2018, mostly on the heels of Soliris.

Special Note: Do not have a scientific background. Sadly recall passing up meeting founder and former CEO (as I was prepping for cross country move) pre-IPO funding of ALXN thru a good friend in early '90s that took it public.