17 Comments
Jun 30Liked by SharpeShark

I appreciate your work! I'm really looking forward to part 2. As another mentioned, curious of your thoughts on MEDXF's competition risk and whether MOB's formulation of terbinafine is superior (MEDXF plan to commercialize topical terbinafine hydrochloride nail lacquer supplied by Polichem, estimates the total value of the Canadian fungicides market to be C$88 million annually)

Expand full comment
author

Thank you, yes that will be addressed

Expand full comment
Jul 3Liked by SharpeShark

Given the success in Sweden, why do you think the European OTC launch will take until 2026? Any insight if that can be accelerated?

Expand full comment
author

That’s coming straight from Anna. No possibility for acceleration because of a combination of terbinafine supply, the complexity of launching so many countries at once (highly unusual), and wanting to get the label changed prior to launch in the event of a successful phase 3.

Expand full comment
Jul 3Liked by SharpeShark

Hey, thanks for this writeup- really appreciate your taking the time to write out the case to let folks test your assumptions.

Just to be clear though- for Europe, your sensitivity assumes a 3% treatment rate by MOB-015 in the downside case?

Yet per the Bausch Canada case earlier, the treatment rate across ALL treatments (the entire market) combined equals just 1.8%? It seems optimistic that MOB-015 increases the market size by 66% then takes 100% of that grown market?

Expand full comment
author

Thanks John. My sense is the Bausch dataset is likely incomplete, especially given the rate of ciclopirox and terbinafine prescriptions in the US around 4.2%, which if anything is an underestimate itself. I think it would be reasonable to expect the two are comparable.

Also, I should have said made this clear in the piece, will probably make an edit to reflect:

OTC products are going to be higher market penetration than their Rx counterparts because of accessibility. So if you have 4% treatment rates in NA, the EU OTC rates should be higher, and it should be dominant when it’s coming into a market with no effective fungicides selling OTC. So I personally think 3% is a very doable rate of EU TAM capture some years after launch.

Expand full comment
Jun 30Liked by SharpeShark

Great summary. Looking forward to part 2.

Expand full comment
author

Thank you Dean

Expand full comment
Jun 30Liked by SharpeShark

In part two, will you write about:

1-medexus as threat

2- if phase 3 trial fails: likelywhood of fda approval as daily dosage?

Expand full comment
author

Absolutely

Expand full comment
Jun 30Liked by SharpeShark

How serious is the plan of being a platform company and buying other drugs? Did Anna mention it often? I'm a little concerned now.

Expand full comment
author

I have seen no indication they plan to do this habitually or on a grand scale. Her temperament (and that of the company generally) suggests to me it’s unlikely to be an issue. There are large shareholders who are very focused on ensuring capital is allocated efficiently. I’m not concerned.

Expand full comment
Jun 30Liked by SharpeShark

Great write up

Expand full comment
author

Thank you Sean

Expand full comment

I am curious, where did you get the 95% onychomycosis patients get left untreated?

Expand full comment
author

From the preceding paragraphs on Canadian and American prescriptions. It’s an approximation I arrived at on my own. I was unable to find anything online detailing treatment statistics.

Expand full comment
Jun 30Liked by SharpeShark

Gotcha, thanks for clarifying!

Expand full comment