Immune Pharma long term shareholders recognize the disconnect between the intrinsic value of each the key assets of the company and the stock price/ market valuation.
The company first identified the potential to structure subsidiaries around asset groups: Immuno-Inflammation, Immuno-Oncology and Pain. After considering shared services from a parent company to the subsidiary, it appears that the greatest value can be realized though “Pure Play” companies, each with a clear mission and positioning, its own management team and its own financing. Through a full spin off process, IMNP shareholders receive shares proportionally in each of the companies. Spin offs have been implemented successfully in pharmaceuticals as well as other industries to unlock value.
Immune Pharmaceuticals (NASDAQ:IMNP) will focus on Immuno-Dermatology with an optionality other immuno-inflammatory opportunities such but not limited to ulcerative colitis (UC) trial and potentially NASH.
Immune has recently reported at the meeting of the American Academy of Dermatology, promising early data for bertilimumab in bullous pemphigoid (BP), an orphan auto-immune skin disease. Bertilimumab showed an average 84% reduction in the disease score with symptom control while allowing for tapering down oral steroids to below 10mg/ day (link to Korman presentation). Confirmation of those results including in patients resistant to steroid tapering may support accelerated development toward an NDA, in an indication of significant unmet medical need. Potential sales following commercial approval have been estimated at $300-500 million. Severe eczema or atopic dermatitis (AD) affects over 1 Million adult Americans and several million children and adolescents. The positive results with Regeneron’s dipilumab open the market for other biologics such as bertilimumab. Analysts anticipates annual sales of dipilumab to exceed $2 billion. Immune is planning to take bertilimumab into an initial phase 2 in AD.
Immune is also developing the first topical nano-formulated cyclosporine for atopic dermatitis and psoriasis, a drug highly anticipated by dermatologists as an alternative to topical steroids as well as biologics in the millions of patients with moderate disease. We expect an accelerated development under the 505(b) 2 procedure, Oral cyclosporine has been a gold standard in those indications but its use has been limited by systemic side-effects.
A recent article highlights the attractiveness of the dermatology market including recent partnering and merger and acquisition activities. We believe that the positioning of IMNP as a “Pure Play” Immuno-dermatology company may facilitate the execution of transactions that will accelerate the development of bertilimumab and topical nano-cyclosporine.
Cytovia, Inc represents a unique opportunity to build a “Pure Play” late stage/ commercially focused immuno-oncology company. We plan to announce upon their completion the financial and corporate transactions supporting this vision.