DAINIPPON SUMITOMO PHARMA - Expectation From BBI-608 To Achieve FY2017 MTP Target Looks Unachievable!

January 2014 | 14 pages | ID: DF9D2850687EN
MP Advisors

Abstracts

Dainippon Sumitomo (DSP) is one of those Japanese pharma companies which has changed its orbit by successful US launch of Latuda (Lurasidone, dopamine-2, serotonin-2 and serotonin-7 receptors agonist schizophrenia/bipolar disorder) in the last two years. But DSP’s expectation to generate $650m by FY2017 from its lead compound BBI-608 from mCRC is way unachievable. Pipeline Cancer Stem Cell Inhibitors- from OncoMed/Celgene (OMP-21M18, OMP-52M51) And Bionomics (BNC-101) also need a close watch. On M & A front (Table 11), DSP’s R & D collaboration with Edison pharma for EP-743 to target mitochondrial disease, with Healios for iPS cell technology demonstrates its interest for developing first in class drug to target niche market, but they do not fill the gap which it needs to fulfill its FY2017 MTP targets. Due to that, no possibility should be ruled out for DSP to do some M & A for late stage compound in oncology space or in CNS/Respiratory space. BBI-608 Optimism Is Too High – Lead Indication -mCRC Opportunity, Pipeline CSC Inhibitors- From OncoMed/Celgene (OMP-21M18, OMP-52M51) And Bionomics (BNC-101) Need A Close Watch- LATUDA: US Blockbuster potential is unavoidable from genericized schizophrenia/bipolar disorder market, while opportunities in bipolar maintenance, MDD with mixed features and IM Depo formulation will be limited due to APTIOM AND OTHER PIPELINE CANDIDATES.