The expanded collaboration will include additional territories that lead to the announced potential for future annual royalty income more than doubling to USD 13.2 – 26.4 million.
Iconovo and Amneal develop a generic Symbicort in the inhaler ICOres. The project is now entering the final phase, and Amneal has begun the set-up of commercial manufacturing for a global market. The original agreement mainly covered sales in Europe, but also Canada, Australia, Russia and some smaller emerging markets. The new, expanded agreement gives Amneal the right to sell in the U.S. and China as well. Hereby the agreement now covers approximately 90% of the total global Symbicort marke, states the company in a press release.
“It is a very strong and positive signal that Symbicort in the ICOres inhaler is a product with great international potential. Financially, this is an important event for Iconovo,” says Johan Wäborg, CEO of Iconovo.
Iconovo has previously announced that the European market can generate annual royalty revenues of between USD 5.2 and USD 10.3 million. This assessment is now updated to between USD 13.2 and USD 26.4 million, which now also includes both new territories and those in the original contract.
Marketing and sales rights of Symbicort in the Nordic region
The new agreement with Amneal also covers the right to market and sell generic ICOres Symbicort in the Nordic market. In 2020, the Nordic market for Symbicort amounted to SEK 800 million. Price erosion in the region is stable and was in recent years about 4 percent per year. Iconovo estimates that the company can reach a market share of 15-20 percent and can then realize revenues of between SEK 80 and SEK 100 million (USD 9.5 – 11.9 million) annually when the full market potential is reached.
“Marketing and sales of ICOres Symbicort in the Nordic market will be carried out by Iconovo Pharma, which will become a new pharmaceutical division within Iconovo AB.”
Marketing and sales of ICOres Symbicort in the Nordic market will be carried out by Iconovo Pharma, which will become a new pharmaceutical division within Iconovo AB.
“Since Iconovo is a Swedish company with long experience in the Nordic market, it is a big opportunity to also become a pharmaceutical company. For us, this is a completely natural step up the value chain, allowing us to create great value for our investors,” says Wäborg.
Photo of Johan Wäborg: Iconovo