The Almirall (LON:0O9B) deal announced on 12 December tops a defining year for Nuevolution AB (ST:NUEVOL); it has delivered on two key IPO promises, signing at least one licensing agreement (Almirall) and one risk-sharing collaboration (Amgen (NASDAQ:AMGN)) within 12-18 months of IPO. The Almirall deal focuses on the development and commercialisation of RORγt inverse agonist for dermatological diseases and psoriatic arthritis. An upfront of €11.2m (SEK109.4m) contributes to a total potential deal value of €453.2m (SEK4.4bn). Added to a strong cash balance and existing deals with Amgen and Janssen, Nuevolution is well placed to generate significant value.
Almirall: A good deal for all
The strategic collaboration with Almirall gives Nuevolution a strong potential revenue stream, while allowing Almirall access to a differentiated product candidate. Almirall has multiple dermatology products, both on the market and in late-stage development, and is well placed to advance the RORγt inverse agonist platform in dermatology and psoriatic arthritis (Nuevolution retain ownership of other indications). Combined potential future revenue of up to €442m (SEK4.3bn) from development, regulatory and sales milestones in addition to tiered royalties on future sales could generate significant revenue for Nuevolution. Almirall is responsible for both funding and undertaking all research and commercial activities.
2017: Onwards to the clinic
While the development of Nuevolution’s lead candidate, the RORγt inverse agonist, will transfer completely to Almirall (potential IND filing in H217), we expect Nuevolution to continue to progress the rest of its pipeline (particularly BRD BD1 and Cytokine X). Nuevolution’s second most advanced programme is an inhibitor of Bet Bromodomain 1 (BRD BD1); it recently demonstrated positive preliminary toxicology and efficacy data in an animal mouse model for Systemic Lupus Erythematosus. Additionally, we anticipate the collaboration with Amgen to be of focus in the short to medium term as Nuevolution generates drug candidates which, if successful in preclinical development, will be taken to the clinic by Amgen.
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