Report | 5 January 2017
Report | 5 January 2017
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Serodus has four key drugs in its portfolio, which are primarily focused on the complications of diabetes. Despite advances in managing glucose levels, there are still limited treatments for co-morbidities linked to the disease and none that alter the course of diabetes. Serodus’s experienced management team has acquired a portfolio targeting these indications. The lead product, SER150, is ready to advance into Phase IIb for diabetic nephropathy, following promising Phase IIa data. Serodus is in the process of delisting from the Oslo exchange and needs to raise c €35m to advance the four assets to value inflection points.
|Adj. PBT (€m)||(1.3)||(2.0)||(3.6)||N/A|
|Net Income (€m)||(1.3)||(2.0)||(3.6)||N/A|
|Adj. EPS (€)||(0.11)||(0.09)||(0.13)||N/A|
5 January 2017
|Market Cap (NOKm)||122|
|Enterprise Value||~ €13m|
|Shares in issue||44.5m|
|12 month range (NOK)||1.06 -3.69|
|Primary exchange||Oslo Axess|
Serodus is a private Scandinavian drug development company focused on the complications of diabetes. Its lead asset is SER150, which is in Phase II for diabetic nephropathy.
Mick Cooper PhD
+44 (0) 20 3637 5042
+44 20 3637 5041
Table of Contents
Serodus is primarily focused on developing drugs for the rapidly growing diabetes market (Exhibit 1). The WHO estimate that the number of people globally with diabetes has increased from 100m in 1980 to 442m in 2014 and that the prevalence among adults has risen from 4.7% to 8.5% during the same time period. There have been new therapies to help diabetics controlling their glucose levels, but there are so far limited treatments for the complications of diabetes and none that can be truly called disease modifying.
The company has a very experienced management team with successful track records of taking products to market and executing licensing deals (see biographies). It operates as a virtual company with only six employees, with all drug discovery and development activities outsourced to established CROs.
The company’s initial therapeutic focus was on cardiovascular diseases and the first drug that it in-licensed was SER100 from Zealand Pharma for pulmonary hypertension. In 2014, Serodus in-licensed SER150 (EV-077) from Evolva and has since shifted its attention to diabetes and co-morbidities.
Serodus had a cash position of NOK9.13m (€1.0m) at Q316. The company estimates that it needs to raise c €35m to advance all of the products in its pipeline through value inflection points, with priority given to the development of SER150 and SER140, both of which have clear blockbuster potential.
|Svein S. Jacobsen||Non-Executive Chairman||Elected Chairman in 2012. He also serves as Chairman of Strongpoint, Fluid Control, Presentasjonsdata, Ericsen & Horgen, and Falkenberg. Previously, he was CFO and VP of Finance of Tomra Systems ASA, from 1984 and CEO and President from 1988 to 1996.|
|Dr Eva Steiness||CEO||Joined Serodus in 2010. From 1989 to 1998 she was Exec VP for R&D at Lundbeck and was responsible for the development of Cipramil (citalopram), the blockbuster antidepressant drug. In 1998 she founded Zealand Pharma and was CEO until 2007 and led the development of lixisenatide (Lyxumia) for Type 2 diabetes. She has also been Chairman of Genmab, a Director of several Lundbeck affiliates, and Chairman of the Danish Governmental Advisory Board on Research Politics.|
|Tore Kvam||CFO||Joined in 2014. Tore Kvam has worked for over 15 years as CFO in both early stage and established companies, including CellCura, Rubik Solution Group, and Factor Insurance Group.|
|Dr Jurgen Langharig||VP Business Development||Joined in 2015. Jurgen Langharig has over 30 years of experience in international marketing/business development having worked at Sandoz (now Novartis), Nycomed (now Takeda), Novo Nordisk, Zealand Pharma and most recently was VP Business Development at Bavarian Nordic. .|
|Dr Nikolai Brun||Joined in 2015. Nikolai Brun has worked in clinical development since 2000, having worked at Novo Nordisk, Genzyme and Genmab on the development of drugs spanning many therapeutic areas. Most recently, he led Genmab’s development of daratumumab (Darzalex).|
|No. of shares (m)||% holding|
|Viggo Harboe Holding 2006||12.6||28.3|
|MP Pensjon PK||1.8||4.0|
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