A good idea to pick an appropriately sized market and look to dominate first.
Afterwards branch out from a solid core foundation. |
 Chat GPT: are there any in-market VHH antibody products for health problems?
Yes, there are VHH antibody products (nanobodies) that have been developed and approved for use in healthcare. These products leverage the unique properties of nanobodies, such as their small size, stability, and ease of engineering, to address various health issues. Here are a few examples of nanobody-based therapeutics that are on the market:
- Caplacizumab (Cablivi): This is the first nanobody-based therapeutic approved for clinical use. Caplacizumab is used for the treatment of acquired thrombotic thrombocytopenic purpura (aTTP), a rare blood clotting disorder. It works by targeting von Willebrand factor, a protein involved in blood clotting, thereby helping to reduce the formation of unwanted blood clots.
- Concizumab: Although not yet approved, Concizumab is a promising nanobody in late-stage clinical trials. It is designed to treat hemophilia A and B by targeting tissue factor pathway inhibitor (TFPI), which is involved in the regulation of blood coagulation.
- Brolucizumab (Beovu): While technically not a nanobody but a single-chain antibody fragment, Brolucizumab shares some similarities with nanobodies regarding its small size and targeted approach. It is used for the treatment of neovascular (wet) age-related macular degeneration (AMD) and works by inhibiting vascular endothelial growth factor (VEGF), which is responsible for the formation of new blood vessels in the retina leading to vision loss.
The development of nanobody-based drugs continues to be a dynamic area of research, with many potential applications in treating a variety of diseases, including cancer, inflammatory diseases, and infectious diseases. The unique properties of nanobodies make them particularly suitable for targeting difficult-to-reach antigens and for applications where traditional antibodies might not be effective.
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Caplacizumab, marketed under the brand name Cablivi, was first approved in Europe in August 2018 for the treatment of adults experiencing an episode of acquired thrombotic thrombocytopenic purpura (aTTP). Following its approval in Europe, it was also approved by the U.S. Food and Drug Administration (FDA) in February 2019 for the same indication. This approval marked it as the first nanobody-based therapeutic available for clinical use, providing a significant advancement in the treatment of this rare and life-threatening disorder. |
Monoclonal vs VHH antibodies:
Chat GPT
Monoclonal antibodies (mAbs) and VHH antibodies (also known as nanobodies) are both types of antibodies used in research, diagnostics, and therapeutic applications, but they have distinct structural characteristics and properties.
Monoclonal Antibodies (mAbs)
Monoclonal antibodies are derived from a single clone of B cells and are therefore identical in structure. They are large molecules, typically composed of two heavy and two light chains, and have a molecular weight of about 150 kDa. Monoclonal antibodies can bind to specific epitopes on antigens, making them highly specific in their action. They are widely used in the treatment of various diseases, including cancers, autoimmune disorders, and infectious diseases. The production of monoclonal antibodies typically involves the use of mammalian cell cultures, which can be complex and costly.
VHH Antibodies (Nanobodies)
VHH antibodies, or nanobodies, are a type of single-domain antibody derived from the heavy-chain antibodies found in camelids (e.g., camels, llamas). Unlike conventional antibodies, nanobodies consist only of the heavy-chain variable domain, making them much smaller (about 12-15 kDa) than conventional antibodies. This smaller size allows nanobodies to access epitopes that are typically inaccessible to larger antibodies. Additionally, nanobodies are more stable, easier to engineer, and can be produced cost-effectively in microbial systems (e.g., E. coli, yeast).
Comparing Therapeutic Applications
Both monoclonal antibodies and nanobodies have their advantages and limitations as therapeutics:
- Efficacy and Specificity: Both mAbs and nanobodies offer high specificity towards their target antigens. However, their effectiveness can vary depending on the nature of the disease and the target.
- Penetration and Distribution: Due to their smaller size, nanobodies can penetrate tissues more effectively and reach dense tissues or intracellular targets that may be less accessible to monoclonal antibodies.
- Stability and Production: Nanobodies are generally more stable and can be produced more cost-effectively than monoclonal antibodies. They are also less likely to elicit immune responses.
- Modifications and Multivalency: While monoclonal antibodies are used extensively in their traditional form, nanobodies can be easily modified to create multivalent or multispecific constructs, potentially enhancing their therapeutic effects.
Which is Better?
The choice between monoclonal antibodies and nanobodies as a therapeutic agent depends on the specific application and the desired properties of the antibody. Nanobodies might be more suitable for targeting hard-to-reach antigens or for applications requiring high tissue penetration or stability. Monoclonal antibodies, on the other hand, have a well-established track record and are preferred in cases where full-sized antibodies are proven to be effective, such as in immune system modulation or targeting of cell surface antigens.
In conclusion, both monoclonal antibodies and VHH nanobodies have their unique strengths, and the choice of which is better depends on the therapeutic requirements and the specific context of their use. |
IMC - 15/4/24:
Jenny Winter
Orthos, which is the VHH antibody-based agreement, is a Dutch company we partnered with a couple of years ago. It was really early stage but very exciting, and actually, since we did the deal, we've seen many more competitors trying to get into this field. Originally, we were focused on just the dog indication, and that's because you can see how big the dog osteoarthritis market is and it is a big market. It also will be a very competitive market.
This year, one of the things that we've done is initiate studies in horses, and that's for a couple of reasons. One is for us, the equine portfolio and the equine business is really the right sort of size and scale. We're smaller than the big guys, but the vets who manage horses, you can see, it's a smaller group, it's a more focused group, and so for us, that's really good. It might not be such an enormous opportunity, but it's a really clear opportunity, and we know that these products should be effective, so we can never tell till we've done the studies. That's why we took the decision to go into equine as well. There is a chance, although no guarantee, that the regulatory process might be a bit quicker as well, and so what we'd like to do is get moving really. We'll go into dogs later in the year; dogs will be a little bit more complicated because of the route of administration, but it's a huge market and we're really excited, but we're also really clear that these are, today, if they are in the clinic, they're only just in the clinic, so they're really pre-clinical. So there's a long way to go before these actually launch in 2027-2028.
But we have the license for two targets at the moment that we're working on. We also have the option to license other targets that Orthos comes up with. So Orthos, you know, the potential is enormous. It could be cancer, it could be, you know, any range of things, so we have the option to license those. We're not going to do that and exercise it until we know the first two. So that's what we're doing with the antibody-based agreement, and the reason why we did this was because the later stages that drugs get to, the more expensive it is to buy into. So we thought we'd start nurturing early, and we've also, the funding is built on that premise, so early funding, small, and it grows as you become certain of the outcome. So this is exciting, but we're really careful about it, and we'll see what happens.
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Zoetis CEO mentions their in-market monoclonal antibody product for cats and dogs:
Bloomberg TV - 4/3/24
Zoetis CEO: Owners Willing to Pay 'Whatever it Takes' on Pet Health
Kristin Peck, CEO of Zoetis, on how Gen Z and Millennials are driving the increase in spending at the vets. Kristin joins Bloomberg's Francine Lacqua on 'The Pulse'.
Quarterly chart since company spun out of Pfizer:
free stock charts from uk.advfn.com |
Monthly Fibonacci from the 2023 low highlights some trading ranges:
free stock charts from uk.advfn.com |
Company discussed from 32-minute mark:
Vox Markets - 18/12/24
The Exchange with Richard Penny |
Daxocox
RNS - 22/4/21:
Animalcare plans to launch Daxocox early in the second half of 2021, into an initial addressable European market estimated to be in the region of £130m. Looking further ahead, the Group aims to expand the potential for Daxocox and has initiated a series of life cycle management pipeline projects to target additional indications, formulations and territories. The development programme is led and managed by the Animalcare team. Daxocox is the sole property of Animalcare Group plc.
Virbac will distribute Daxocox in the majority of European countries outside Animalcare's seven direct markets. Virbac is the sixth largest animal health company worldwide and has existing distribution partnerships with Animalcare.
RNS FY21 - 29/3/22:
In 2021 we were delighted to see Daxocox enter that top 40 category. Our novel treatment for osteoarthritis-related pain in dogs was introduced in the second half and generated £1.2m in sales. Though we are launching into a vigorous marketplace, increasingly characterised by large corporate veterinary groups, we remain confident Daxocox will be our biggest selling product within the next five to ten years.
RNS FY22 - 28/3/23:
It was particularly satisfying to see Daxocox, our novel treatment for osteoarthritis-related pain in dogs, comfortably enter the top 10 ranking of Animalcare products.
RNS FY23 - 9/4/24:
The Group continues to invest in sales and marketing activities to drive Daxocox uptake in our direct sales markets, with the expanding prescriber base delivering 16.7% revenue growth versus the prior year.
RNS H124 - 24/9/24:
Strong double-digit growth in Daxocox (+41%).
Panmure - 24/9/24:
There were the usual ups and downs in the portfolio, but the new products and key brands such as Daxocox (up 43%) and Plaqtiv+ (up 36%) led the charge. Animalcare continues to invest in these brands, the focus is paying off. There is plenty of growth left in Daxacox, with Animalcare’s sustained released formulation helping it to win market share from competitors. The brand is also being expanded, with two new doses in the pipeline that will help target larger dogs. The company remains of the view that Daxocox could become a £5m to £10m brand – we think it is closing in on £3m now so the target looks achievable. |
Pharmashots - 12/12/24:
Top 20 Animal Health Companies of 2024
-The WHO’s One Health policy is driving innovation in animal health, emphasizing the intersection of human, animal, and environmental care
-The global animal health market, valued at $62.4B in 2023, is expected to grow at a CAGR of 9%, reaching $114B by 2030
-PharmaShots presents a comprehensive report on the Top 20 Animal Health Companies of 2024, led by Zoetis ($8.54B), MSD Animal Health ($5.62B), and Boehringer Ingelheim ($5.21B), based on their strong revenue performances
Continued... |
Taken the CEO six years to sort out the business, develop a pipeline of new products, strengthen the balance sheet and find growth capital.
Is 2025 the year when all the hard work starts to come together so the market can see more visibility for topline growth?
Panmure - 14/10/24:
"Animalcare has been through a significant journey over the last few years, cleaning up its portfolio, honing its go-tomarket offering and moving to a significant net cash position post the recent disposals. We think its growth strategy makes a lot of sense, with the company looking to expand its platform and feed it with a regular stream of product launches. This could boost revenue and EBITDA growth to 8% and 10% respectively and should, over time trigger a significant rerating."
This article is from 2023 and shows the levels of business development required to get them to a stage for growth.
S&P Global - 24/7/23:
Animalcare claims it now has a platform to stimulate future growth
UK-listed business Animalcare has been going through a period of transition in recent years. S&P Global’s head of animal health Joseph Harvey met with director of strategic alliances and acquisitions Martin Gore at the recent VetHealth Global conference on Canada’s Prince Edward Island to find out more about the firm’s growth strategy.
Animalcare has been spending a lot of time putting together a sales and marketing team more adept at selling novel products. The business has historically been largely focused on veterinary generics for companion animals but, more recently, it has turned its attention to diversifying its product portfolio to give itself an opportunity to pursue more sustainable sales growth.
Martin Gore remarked: “Animalcare was made up of several different European companies. Animalcare bought Ecuphar, which itself was multiple companies that all had different cultures and separate portfolios. We spent a good few years bringing this all into one company and one culture."
The group previously had 330 brands. This number has been halved to help the company focus on higher-margin products with greater growth potential. Mr Gore explained: “That process took time. Under the leadership of our chief executive Jenny Winter, we’ve been adding new personnel, creating structure and creating a new culture. We’re not completely there yet but we’re in a better place than we were three years ago and in a good place to move forward.
“You take a look around at animal health and ask: ‘Is there a future for anyone our size as a pure generics company?’ It’s a tough area. You have all the big companies who manufacture themselves selling generics. There are so many generics companies now. There is a lot of low-hanging fruit that has gone and many of the good brands have already been genericized. It was clear we had to do something else. It’s easy to say we’re going to get into novel and differentiated products but it’s not so easy to achieve.
“Now we’ve done the internal work, our sales have been flat in the last couple of years but our gross margin has increased a lot after we sorted out the portfolio. We’ve now got that basis we need to grow. We now need to find products. The sales team are ready for novel products and now we need to feed them with more of these products.”
Animalcare had a head start in the innovation stakes with Daxocox – a treatment for osteoarthritis related pain in dogs that was being developed by Spanish firm Esteve, which was previously acquired by Ecuphar. Daxocox became one of Animalcare’s top 10 selling products in 2022. The business helped refresh its portfolio by investing in STEM Animal Health, which is a joint venture with Canadian company Kane Biotech. STEM’s Plaqtiv+ oral antibiofilm range also contributed to Animalcare earnings in 2022.
Last year, Animalcare entered into a research alliance with Dutch business Orthros Medical. The collaboration is focused on two pre-clinical VHH antibody candidates that will be developed for the treatment of canine osteoarthritis. The partners aim to add extra projects to the collaboration.
Mr Gore said this is a particularly notable deal for Animalcare, as it brings in early-stage assets to work on. The business hopes to cultivate a balanced pipeline that includes products almost ready to sell and others that have further to travel down the development pathway.
While Animalcare is seeking products that will differentiate its offering, it is sticking to items that complement its current portfolio in pet health. As major animal health businesses increasingly focus on their top brands, Animalcare hopes to offer an outlet to some of the lower-selling products.
Mr Gore noted: “The big companies have got lots of projects and many have been stopped for commercial or strategic reasons. There are probably some really good products in there – $20-30 million brands – that could be significant for a company like Animalcare. We could start to build a network around a product like that and grow it. The industry still needs an environment of smaller products – it’s not just about blockbuster products.”
Long journey
Mr Gore told S&P Global Animal Health: “The journey has begun but it’s a long journey. What we learned with Daxocox is you need to change the company itself – sales and marketing. It’s one thing selling a generic and it’s another selling a novel product. We’ve spent the last couple of years working on our internal commercial functions to give us a platform to go and find other products. This might be through developing them ourselves or licensing them in.”
Animalcare is open to all types of deals to bring in new products, including acquisitions. The firm also wants to provide a clear path for international companies to sell theirportfolios in Europe. Animalcare would take on the registration and commercialization aspects for businesses in North America and Asia.
Mr Gore pointed out Animalcare’s relative size to other companies in the animal health sector makes it an ideal distribution partner. The firm represents a nimble salesforce that can dedicate more time on particular brands that do not get the focus they need at larger businesses.
While Animalcare is trying to grow the number of companies it represents in Europe, Mr Gore is wary this is a strategy that comes with risk and distribution relationships can be cancelled after a change in approach from the originator firm. Mr Gore said it is critical to find the right partners to ensure a lasting affiliation.
Currently, Dechra Pharmaceuticals – the largest veterinary medicine business based in the UK – is subject to a major private equity takeover that indicates the current interest in purchasing animal health assets. While Dechra is much larger than Animalcare, Mr Gore noted the former’s growth and progression shows how a business can develop into a healthy size “given funding support to execute a strong strategy”. |
Back-of-the-envelope calculation for 2025:
-EBITDA: 18m
-EBIT: 14.5m
-Interest: -0.7m
-PBT: 13.8m
-Tax: 27% = 3.7m
-PAT: 10.1m
-EPS: 10.1m divided 68.9m = 14.65p
Forward p/e at 246p = 16.8x
-20x = 293p
-25x = 366p |
Here's the founder on a 2023 video called, Randlab - The Office: |
I don't know but if it is it suggests the seller wanted their "baby" in the hands of Animalcare for the longer term future. Sometimes it comes down to more than just optimising for maximum personal financial return.
This reads a genuine expression of trust from the Randlab founder:
"It was important for me to find someone who was equally passionate to serve our equine veterinarian customers and through them, their clients. In Animalcare we have found that right fit........" |
Is this the deal of the decade or is there a catch?
Panmure - 16/10/24:
In order to provide a sense of what this strategy could do for Animalcare, we modelled a base case scenario that makes the following assumptions:
Geography – Animalcare closes a deal in January 2025, spending £40m at 17.5x EBITDA to acquire a European veterinary pharmaceutical with EBITDA margins of 15%......
ANCR - 3/12/24:
A highly profitable business with EBITDA of A$11.0 million and an EBITDA margin of 48% in FY24, expected to deliver significant earnings accretion in 2025
Acquisition multiple of 10.9x adjusted EBITDA (year ended 30 June 2024)
Acquisition expected to be materially earnings accretive - at least 20% in FY25 |
Novel T - March 2024:
ANTIBODIES OF LLAMAS FOR OSTEOARTHRITIS MEDICINE
The current lifestyle in the Western world ensures, among other things, that the number of osteoarthritis patients continues to increase. There are already 1.5 million in the Netherlands - with all its consequences. 85% of patients experience pain and limitations in their social life every day. Orthros Medical is working on a medicine for this chronic condition - based on antibodies from llamas. CEO Robert Jan Lamers talks about this unique find and the impact it can have.
The story of Orthros Medical started when Marcel Karperien, a professor at the University of Twente, met Theo Verrips, a professor at Utrecht University. Marcel had been researching osteoarthritis for years and was looking for a way to develop a medicine that could be administered locally. At the same time, Theo was making camelid antibodies in yeast. This gave rise to the question: can a medicine for osteoarthritis be developed using antibodies from camelids? “That question was the start of Orthros Medical,” says Robert Jan.
Quick development
The advantage of the antibodies from camelids - and specifically from llamas - is that they are tiny and can be applied locally. “This means you have less chance of side effects,” Robert Jan explains. “A pill for pain relief goes through the entire body, but we can apply the antibodies locally with an injection with a delivery system. This ensures that we have a good safety profile and that patients benefit from it for a long time. This generation of antibodies is developing very quickly. We catch that wave and surf it.”
The antibodies from llamas that Orthros Medical works with are grown in yeast. This influenced the location where the company was allowed to establish itself. Robert Jan explains: “Because we work with genetically modified yeasts, we were not allowed to establish ourselves on the UT campus. That is why we are now located, with a team of 10 employees, at The Green East in Raalte, a farm complex that has been converted into a high-tech innovation center. We are still relatively close to the UT but have our own location with lab facilities.”
Strengthening the company
The company currently does not have a product on the market. “However, we are already making money from our licenses. We are now in the animal study phase,” says Robert Jan. “We will start treating the first patients in a few months. These are not people, but dogs. They are also increasingly struggling with osteoarthritis because a cookie for the owner means a cookie for the dog. It will take some time before we can treat people, as you have to jump through all kinds of hoops. That is frustrating for patients, but fortunately, we are taking many steps in the right direction. The support from the High Tech Fund is a good example of this because it enabled us to purchase expensive equipment that we needed to analyze more product candidates faster. We felt like a 'llama in a candy store'. Many investors want you to use the money for product development on the way to an exit. The fact that we could invest in equipment with the High Tech Fund has absolutely strengthened our company's foundation.”
Partners, employees, and investors
With this strong foundation, Robert Jan looks to the future. “We are incredibly ambitious, and we want more and more,” he says. “Broadening our portfolio is crucial for the development of our company. So, in ten years, we want to have at least several products that can help osteoarthritis patients, even if it is only a subgroup of that 85% who suffer from pain daily. If we can offer an alternative for that group - people and animals - or perhaps even regeneration, that would be fantastic. It would be even better if we could also apply our technology to oncology. To get there, we work closely with not only the UT but also with Utrecht University, Leiden UMC, and Amsterdam UMC. Moreover, we are always looking for good employees and investors because we want to grow into a leading company in our area. Not for the money but to help patients. Then, we can ensure that patients can participate in economic and social life again. That is the impact we want to make.”
[...] |
Dechra certainly not holding back since they went private.
New CEO is a high-powered multi-national schooled wonderkid.
BOSTON, July 18, 2024 /PRNewswire/ -- Novo Holdings A/S, a leading international life sciences investor, today announced that its portfolio company, Invetx, has agreed to be acquired by Dechra Pharmaceuticals Limited ("Dechra"), an international veterinary pharmaceuticals business, for up to $520 million in total consideration on a cash-free and debt-free basis.
Invetx is a pioneer in creating novel, protein-based animal health therapeutics to transform standards of care in veterinary medicine. With its best-in-class, fully integrated discovery development and commercial manufacturing platform, Invetx leverages validated biotechnologies for human health to create species-specific, optimized and half-life extended monoclonal antibody (mAb) candidates to treat a wide variety of chronic and serious diseases in animals.
Jesper was appointed as Chief Executive Officer of Dechra on 10 June 2024.
Jesper has held various positions in Colgate-Palmolive since 2005, including Vice President for Global Marketing and Innovation and most recently his appointment as President for North America. Jesper was previously President of Hill’s Pet Nutrition between 2019 and 2022, where he led extraordinary growth while driving Hill’s digital transformation. Prior to that role, he served as Vice President & General Manager of Hill’s U.S. Jesper joined Colgate’s Nordic Group in 1997 as an assistant brand manager and progressed through a series of marketing and innovation roles across Europe before becoming Worldwide Director, Global Marketing & Innovation, in 2013. |
"Randlab has offices in Australia, Belgium, China, Dubai, New Zealand, Singapore, and most recently, the USA." |
Middle East is attractive market for equine products. Geographical expansion possibilities for cross sell etc. Relatively price insensitive. |
Panmure - 16/10/24
Equine market is fast growing and an attractive niche, in our view
The Equine market is relatively small in terms of number of animals: the European Commission estimates there are only around 6m horses in Europe. However, spending per animal is high. Grandview estimates that the global equine healthcare market is worth $3.4bn per year, rising at a 2024-30 CAGR of just over 8%. Europe accounts for between 25% and 30% of the market by spending.
This reflects the higher cost per animal (the average cost for a recreational horse is between £3,000 and £4,000, versus £1,000 to £1,500 for a dog and £150 to £500 for a cat) and ongoing care costs, both of which make it economical to spend more on keeping an animal healthy.
In the sports market (which accounts for around 50% of the horses in Europe), the sums are even greater, and with prize racehorses worth multiple millions, the market is far less price sensitive than either the Companion or Production Animal market.
However, in many ways it is a less competitive market, with the major veterinary pharmaceutical companies concentrating on the larger Companion and Production Animal markets. Equine pharmaceuticals and vaccines account for around 30% of total equine spending, or around $1bn. This makes it more attractive for companies like Animalcare. |
Over subscribed for the raise. May be further acquisition potential.
"The Fundraise will also enable the Company to maintain an appropriate leverage position that enables Animalcare to continue to invest in its growth strategy, including future inorganic investment opportunities." |
Third time lucky?
Business is certainly more strongly positioned with numerous growth drivers that could enable it to push through 400p and target 600p.
Quarterly chart since 2008:
free stock charts from uk.advfn.com |
If — and it's a significant "if" — the equine VHH (Variable Heavy Chain antibody) proves successful it could drive a re-rating of the share, potentially up to 30x. Christopher Mills, CEO of Harwood Capital, mentioned during the July 2024 Vox Markets webinar that he anticipates news on the equine VHH probably by the end of 2024.
ANCR on the Randlab acquisition - 3/12/24:
Provides the opportunity to maximise the potential of Animalcare's current equine developments (e.g. VHH antibody programme) and enhances future equine partnering opportunities alongside other commercial and new product development synergies |
Another good point of the deal is company edges closer to AIM100, which ignites a little more institutional interest |
Company is getting closer to their £100m t/o target where the flywheel effect kicks in harder - as discussed by the CFO from the 34-minute mark:
IMC - 17/10/24
ANIMALCARE GROUP PLC - Interim Results 2024
The Director of Supply Chain, Alex Sugden, looks top quality:
-9 years at Colgate Palmolive
-12 years at GSK |
A good acquisition, solid management and over subscribed at 5% discount.
Geographic expansion possible.
Nothing to criticise imho.
Glad to hold. |
Investors champion reckons this a solid looking acquisition and I agree. I would like to see a presentation from Company but this is the major deal they have wanted to do throughout 2024. |
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