The product fills an enormous health need globally. It is the answer to farmers need to cut the production cost and contributes to sustainability both short- and longterm. The market for the product is enormous, and the unique manufacturing technology keeps competitors at bay.
Based on the manufacturing technology new products for other species are planned to be developed in the future, which will further increase the market share of the products as well as the valuation of the company.
The problem this product solves
Antibiotic resistance is a $100 trillion medical nightmare. The report from European Centre for Disease Prevention and Control and U.K. government’s Review contend that this issue has perched the world on the edge of catastrophe, causing 700,000 deaths annually today that will become 10,000,000 by 2050.
The livestock sector has contributed largely to this problem.
Meat-animals are fed antibiotics to increase their weight gain, prevent disease, and make meat-production cheaper. The FDA says that 80% of antibiotics sold in US are fed to food animals. Globally, consumption of antimicrobials by livestock is estimated to rise by 67% by 2030.
How the product solves it
FarmPharma develops an innovative antiviral and antimicrobial prophylactic and therapeutic treatment for livestock cattle. The product is based on body’s own ability to activate immune defense against multiple infections, and the treatment is sufficient to eliminate the overuse of antibiotics in cattle farming worldwide.
The product prototype was successfully tested and showed to improve cattle health, decrease mortality, dramatically eliminate the antibiotic overuse and decrease farming costs. FarmPharma aims to further develop and introduce the product to European and global market offering new generation healthcare for livestock animals worldwide and shifting the whole paradigm of livestock quality and care.
The product is based on a unique combination of immune-stimulating proteins called interferons that, once injected to the animal, activate its natural shield against broad spectrum of infections during a given time-period. The product can be administrated both to adult and newborn animals as a prophylactic measure or as a treatment of outbreaks. The shield is effective on both bacteria and viruses because it activates the non-specific pathway of immune system, and therefore is effective against a great variety of infections.
Product use cases
The prototype of the product was successfully tested in Eastern Europe on cattle (about 400 000 doses) and showed to dramatically improve cattle health, decrease mortality, eliminate the need of antibiotic overuse and decrease farming costs. The product should be injected at least twice to the animal with a 24-hour interval to achieve the prophylactic action, and once each day until the infection symptoms resolve to achieve treatment of outbreaks.
Igor Lokot Board Chair, Business Development
Igor Lokot besides a PhD in Chemistry has an extensive 15-year experience in pharmaceutical business. He worked as R&D Director at a Swedish pharmaceutical entrprise Oasmia Pharmaceutical that has developed medicine for veterinary use. Igor has later on started his own pharmaceutical enterprise Double Bond Pharmaceutical for development of human ... See more
Igor Lokot besides a PhD in Chemistry has an extensive 15-year experience in pharmaceutical business. He worked as R&D Director at a Swedish pharmaceutical entrprise Oasmia Pharmaceutical that has developed medicine for veterinary use. Igor has later on started his own pharmaceutical enterprise Double Bond Pharmaceutical for development of human medicines, where he is currently a CEO and Board Member. His role in FarmPharma lies predominantly in ensuring the capital for the project and controlling the vision and the plan are followed. See less
Iulia Karlsson QA and Communications
Iulia Karlsson has a PhD in Medical Biosciences from the Swedish University of Agricultural Sciences (SLU) and has since graduation been employed as Regulatory Affairs Specialist and Business Developer in a pharmaceutical start-up enterprise Double Bond Pharmaceutical that develops and commercializes medicines against cancer in humans. Iulia has therefore a ... See more
Iulia Karlsson has a PhD in Medical Biosciences from the Swedish University of Agricultural Sciences (SLU) and has since graduation been employed as Regulatory Affairs Specialist and Business Developer in a pharmaceutical start-up enterprise Double Bond Pharmaceutical that develops and commercializes medicines against cancer in humans. Iulia has therefore a broad hands-on experience of driving a pharmaceutical project from the idea towards the market and has invaluable network in the scientific veterinary society in Sweden. Iulia's role in the project is to communicate the values, the plan and work progress to all parts and to ensure that the scope and technical quality of the project corresponds with the updated regulatory standards. See less
Market size based on antibiotic use from 2016 in selected EU countries (France, Germany, Italy, Spain, Poland) was calculated according to fraction of cattle treated with antibiotics. At the estimated price per dose 13 €, calculated as the price between the cost of a vaccine and the cost of an antibiotic per animal, the combined market share at 2% market penetration level for the 5 EU member states mentioned above is 13 million EUR, and at 10% - about 65,6 million EUR (Eurostat). The first launch of the product is planned in Spain to meet the highest need and interest.
The market for immuno-stimulatory drugs for livestock animals is new with low competition:
- No anti-viral drug for cattle is registered globally
- No interferon-based products for cattle are registered globally
- One drug with immuno-stimulatory properties for cattle is registered in USA and EU that restores immune system in cow after the calf is delivered. The indication for this drug is prevention of bacterial mastitis, which is a very narrow compared to our product that is aimed against the broad-spectrum viral and bacterial infections in cattle.
- One immuno-stimulatory drug for calves is registered in the USA with protection against bacterial infections.
Unique differentiator from competitors
Our product protects against both bacterial and viral infection at the same time, and has therapeutic action for both types of infection.
The two registered immune-stimulating drugs mentioned above start the immune response in a way that differs from our product, which means that the type of protection and treatment mechanism is different, leading to that the protection is only against bacterial infections. Our product's advantage is that it stimulates the cell-mediated branch of the immunity that leads to the defence that includes protection both against bacteria and viruses.
Company revenue streams
Prior to product launch the revenue streams will be as follows:
A part of the product, e.g. an exclusivity license for a certain country or region, can be out-licensed in return to investment into the early development of the product
- Non-dilutive funding
Great interest from EU member states and WHO to find the alternatives to antibiotics, and our collaboration with SLU allows to seek grants from EU and scientific funds
- Dilutive funding
At the later stage of the product development, we plan to enter the stock market to attract larger investments and complete the steps to product launch.
The product will be launched and distributed initially within EU member states through veterinary pharmacy chains. An established professional service-provider within distribution of veterinary products will be hired, and information about distributors will be available on the website before and during the launch of the product. In addition, it will be possible to place an order or contact the distributor through our own homepage and social media channels.
- Several types of cattle-specific interferons were combined and developed during 2000-2016 as product prototypes for veterinary use in former Soviet countries by our partner in Belarus.
- 450 000 doses of a product prototype for use in cattle were tested in 2016 in Belarus and Russia, and this prototype will be further developed by FarmPharma to reach the European and global market.
- FarmPharma has done a scientific and technical due diligence on this prototype and established a network for GLP manufacturing of the industrial batch and clinical trials of the product in Europe.
Next key objectives
5-year business plan milestones:
- Patenting of the product (year 1)
- IPO of the company in Sweden (year 1-2)
- Performing clinical trials of the product in EU and subsequently obtaining the marketing authorization (year 2-3)
- Out-licensing of the products to a potential partner (e.g. a larger pharma company) or selling of the product portfolio to a potential buyer (year 1-5)
Initial financing at 500 000 SEK was secured by Swedish enterprise Double Bond Pharmaceutical AB that covered prototype research costs, enterprise start capital, graphic profile creation, marketing material generation and accounting costs related to enterprise registration and preparations for the funding campaign.
To facilitate the best and most time-efficient development of the product we aim to partner with researchers from Swedish University of Agricultural Sciences (SLU). This partnership is currently being set and will be financed by SLU Holding.
Use of funds
- One-third of the funds will be used to manufacture a GMP-certified batch for clinical trial of the product in Europe.
- Another 30% will be used as wage for an executive CEO who will maintain all necessary collaborations for product development, keeping direct contacts with veterinary scientists for planning and conducting the trials, and spreading the information on the product in scientific and veterinary forums.
- The last part will be used for marketing and communications to secure continued financing of the project. Current funds will cover all steps until clinical trials and establishment of future financial support for the company.
Starting from 2019 the product is planned to be sold on non-regulated markets with expected dividends generated from annual sales of about 2 million SEK. Following the product registration in EU and globally, which is expected to be year 2022, the annual sales of the product are expected to reach 20 million SEK.
The company has possibility for an early exit in the form of IPO that is expected to take place during 2019.
The eventual revenue from product sales will be reinvested into development of similar veterinary products for other livestock species and therefore further growth of the enterprise.
A number of risk factors may have an adverse impact on FarmPharma: difficulty to establish long-term financial support, longer time for out-licensing of the product than expected due to unexpected market fluctuations, sudden exit of key-investors, delays in clinical trials due to unexpected new rules or regulations, internal technical problems at suppliers or manufacturers, risks associated with death or illness of key projects leaders, unexpected forced re-pricing of medicinal products in EU, political and risks associated with potential violation of IP and efforts for legal disputes on that. The risks will be minimized using a pro-active strategy within the enterprise.