Amryt Pharma PLC (LON:AMYT) said a product that it licensed the rights to is performing better than expected.
Lojuxta treats a rare and life-threatening condition called Homozygous Familial Hypercholesterolemia, which causes abnormally high levels of bad cholesterol.
Revenues from the treatment were €5.75mln for the six months ended June; the company’s total sales for the period were €6.18mln.
Addressable market bigger than expected
Amryt thinks Lojuxta’s addressable market is €100mln in the EU and other territories where it holds the rights, which, according to chief executive Joe Wiley “is larger than we originally anticipated”.
“A major focus for us looking forward is opening up new, untapped territories covered by our licence agreement,” he added.
The company said it is currently in the process of putting in place the commercial, medical and regulatory infrastructure to support additional products it is developing or might bring in.
Lot of excitement
There is currently a lot of excitement around AP101, described as Amryt’s “lead asset”.
Created to treat Epidermolysis Bullosa, a condition where the skin is fragile to the faintest contact, it is currently undergoing phase III clinical trials.
An interim data read-out is expected in the first half of next year. The successful completion of the full study could see AP101 fast-tracked as an orphan drug, which treats an unmet medical need.
The firm estimates the medication’s potential market to be in excess of €1.3bn worldwide.
Its preclinical innovation, AP102 for rare neuroendocrine diseases, remains on track for human trials next year.
As is common for a company at Amyrt’s formative stage of commercial development, the business was unprofitable in the six months under review. The operating loss was €5.79mln.
More importantly, it is financially well endowed with €10.9mln cash on hand as at the end of June. It also has a debt facility it can call on.
"The company has achieved significant milestones in the first half of 2017 and we remain confident of continuing strong progress over the remainder of 2017 and into 2018," said CEO Wiley.
The shares, up 21% in the last year, marked time at 22p.
City broker Beaufort is a fan, lifting its price target to 65p a share from 62p.
It pointed out the company’s current market worth is currently less than the prudently discounted value of Lojuxta.
“[Amryt is] delivering on every promise and more,” Beaufort said in a not to clients.
“This truly impressive half-year report highlights a management very much in control of an ambitious programme that spreads across a multiple rare diseases, meeting or exceeding best expectations in every case.”
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