Relmada Therapeutics — Update 9 December 2015

Relmada Therapeutics — Update 9 December 2015

Relmada Therapeutics

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Relmada Therapeutics

Achieved proof-of-concept for BuTab

BuTab development update

Pharma & biotech

11 December 2015

Price

US$2.31

Market cap

US$27m

Net cash ($m) at 30 September 2015

19.2

Shares in issue

11.6m

Free float

95%

Code

RLMD

Primary exchange

OTC

Secondary exchange

N/A

Share price performance

Business description

Relmada is an emerging pharmaceutical product company focusing on the treatment of pain. It has four key products, LevoCap ER, d-Methadone, BuTab ER and MepiGel that focus on large and lucrative segments of the pain market.

Analysts

Maxim Jacobs

+1 646 653 7027

Christian Glennie

+44 (0)20 3077 5727

Relmada Therapeutics is a research client of Edison Investment Research Limited

Today, Relmada announced that its pharmacokinetic (PK) study in 30 healthy volunteers for BuTab, its orally ingestible formulation of buprenorphine, was successful and achieved safe and effective blood levels of the drug. As a reminder, currently none of the marketed forms of buprenorphine (which have >$1bn annual sales in the US combined) can be swallowed as they are sublingual, buccal or patch formulations.

Year end

Revenue ($m)

PBT*
($m)

EPS*
($)

DPS
($)

P/E
(x)

Yield
(%)

06/15

0.0

(20.8)

(1.92)

0.0

N/A

N/A

06/16e

0.0

(24.6)

(2.23)

0.0

N/A

N/A

06/17e

0.0

(29.2)

(2.54)

0.0

N/A

N/A

Note: *PBT and EPS are normalized, excluding amortization of acquired intangibles, share-based payments and exceptional items.

Buprenorphine is a partial opioid agonist used for two indications – addiction and chronic pain – but suffers from poor oral bioavailability due to first-pass metabolism in the upper gastrointestinal tract and liver, and hence no orally ingestible tablet is available.

The company is still analyzing the data, so it was unable to provide much detail or discuss the next development steps, though it previously guided towards initiating a Phase III for pain and a potential partnership in 2016. One important point that it did disclose on the conference call is that the oral bioavailability is “significantly higher” than that of Opana ER, an oral opioid that had around $400m in peak sales with 10% oral bioavailability. This suggests that BuTab has been formulated to have a high enough oral bioavailability to be commercialized successfully. We maintain our estimate of $217m in peak sales for the product in both the chronic pain and the opioid dependence markets.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place

88 Phillip St, Sydney

NSW 2000, Australia

Wellington +64 (0)48 948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Research: Healthcare

Selvita — Update 8 December 2015

Selvita

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