Business model and strategy

Business model with a focus on identifying new groundbreaking projects with clear potential for value added

Identification of new projects:

Through a broad access to academic networks in the Nordic region, Coegin Pharma has unique competencies in identifying and bringing in undervalued external projects with potential for value-adding, by bringing in specific resources and subject matter expertise for further maturation. Below are examples of Coegin Pharma’s  requirements on potential new projects:

- Projects with strong research data and patent protection
- Projects with significant commercial potential
- Projects with potential for novel breakthrough treatment methodologies
- Projects addressing a clearly defined medical need
- Projects that can benefit from Coegin Pharma's competencies, structure and resources
- Projects with manageable capital needs
- Projects with potential for early exit

Financing of the portfolio companies:

The board and management have a long and broad experience in financing combined with a focused and efficient business model. Coegin Pharma is therefore well positioned to identify, finance and add value to pharmaceutical projects in a cost-effective and scalable manner. Coegin Pharma has initiated a process to incorporate the existing projects in the project portfolio, to create optimal focus for each of them and to provide them with the right expertise and financial conditions. This also creates interesting opportunities to customise financing solutions for a portfolio company, while giving Coegin Pharma a reduced risk profile.

Coegin Pharma’s status as a listed company provides access to a broad shareholder base and public capital, but the model with portfolio companies also creates opportunities to attract specialist investors with a direct interest towards a specific development project in a portfolio company. The financing model can therefore be adapted to the needs of each portfolio company. Coegin Pharma’s total capital need may be reduced, if the board of directors decides to provide the opportunity for direct investment in one or more of the portfolio companies.

Coegin Pharma’s strategy is, through a mix of financing models, a cost-effective structure and the possibility of external direct investments in portfolio companies, to pursue a broad portfolio of projects without significantly accelerating Coegin Pharma’s capital need. Coegin Pharma can thus combine the advantages of being a listed company with those of being able to attract specialised investors or potential future partners, who are offered the opportunity to invest directly in Coegin Pharma’s unlisted portfolio company. The financing strategy, which can be tailored to the needs of each portfolio company, enables Coegin Pharma to actively broaden its project portfolio, with a limited financing need.

Value-adding and scalability:

The strengths of Coegin Pharma include a strong network of experts across the entire drug development value chain, from research and clinical development to commercial positioning and exit. The company can use the right resources at the right time in a flexible way, and cost-effectively add value to the portfolio companies’ projects. Coegin Pharma’s team ensures that projects are run by the right people, with experience and competencies in the relevant therapeutic area, that projects have a well-defined strategy for regulatory approvals, and an equally well-defined strategy for commercialisation of the drug candidate. Another important part in being able to run the portfolio companies cost-effectively, is the well-developed platform for project and corporate governance, as well as the administration that Coegin Pharma has established. The portfolio companies can benefit from shared administrative and research resources, and established corporate governance practices, providing synergies such as reduced overhead costs and effective governance.

Exit: The portfolio companies shall have well-defined exit strategies with a balance between a reasonable cost profile, attractive commercial conditions and potential for early exit after Coegin Pharma has added value to the projects. Coegin Pharma defines exit as an early out-licensing in Phase I or Phase II to international industrial players, but exit may also include spin-out with subsequent listing or sale of a portfolio company to a larger listed Swedish or Nordic life science company, where Coegin Pharma’s project/portfolio company complements the existing business of the acquirer. Coegin Pharma’s portfolio companies will therefore have ongoing dialogues with, among others, potential industry partners in the biotechnology and pharmaceutical industry.

Since the listing, Coegin Pharma has taken several important steps in the development of the company

Strengthening the board and management:

Coegin Pharma continues to reinforce its board and management, over the long term, by adding strong resources to the management team with proven results and experience in biotechnology and drug development. To this end, the company has recently filled three key roles in the company: Chief Financial Officer, Chief Medical Officer and Chief Commercial Officer, all with broad experience and competencies in the industry. The company also has a board with solid competence in drug development, corporate governance and financing. The board is now further reinforced by Professor Thoas Fioretos, who is proposed for election to the board at the forthcoming annual general meeting. Professor Thoas Fioretos is an internationally recognised physician and cancer researcher who will strengthen the board with his experience and competence.

Positive results from the COAK study:

Recently, Coegin Pharma achieved an important milestone in the company’s history with the presentation of positive results from the COAK study, which is a Phase I/II clinical trial investigating the safety of AVX001 gel in 60 patients with actinic keratosis (AK). The primary study findings showed that AVX001 in gel formulation is a well-tolerated and safe drug candidate for the treatment of actinic keratosis. The secondary study findings indicate a clear tendency to efficacy of the treatment with AVX001, even though the COAK study was not designed to demonstrate the efficacy of the drug candidate. Based on the findings of the COAK study, Coegin Pharma plans to broaden the clinical development of AVX001 by initiating a Phase IIa trial in basal cell carcinoma

Acquisition of Follicum:

Through the strategic merger acquisition of Follicum AB, Coegin Pharma has added a number of new peptide-based drug candidates. In addition to FOL005 for the treatment of hair loss, there are two other drug candidates that have shown promising results in protecting human cells against the metabolic stress and damage associated with diabetes, which has the potential to reduce organ damage in diabetic patients. These peptide-based drug candidates are considered interesting candidates for the development of new drugs that reduce the risk of diabetic complications, such as chronic ulcers, chronic liver and kidney diseases, and cardiovascular diseases. Coegin Pharma has both broad and deep knowledge of liver and kidney diseases, and there are significant synergies in combining Coegin Pharma’s existing cPLA2a inhibitors and the peptide-based drug candidates from Follicum. As a result, Coegin Pharma can now present an expanded portfolio of promising innovative concepts for the treatment of cancer, chronic inflammatory diseases and diabetes complications based on both small molecules as well as on the company’s peptide technology.