PharmaEngine announced yesterday (5th) that its pancreatic cancer drug "Onivyde" has achieved the second-phase sales milestone in the European and Asian markets for the 2024 fiscal year. As a result, PharmaEngine will receive a $50 million (approximately NT$1.64 billion) milestone payment from its licensing partner, expected to contribute over NT$9 in earnings per share (EPS), driving the company to a significant profit for the fourth quarter of 2024, equivalent to a full quarter's worth of capital.
PharmaEngine stated that it expects to receive the second payment of $60 million next year. Furthermore, industry insiders believe that PharmaEngine’s continued profitability and momentum over the next two years will further strengthen the company's dividend policy.
PharmaEngine has two major institutional shareholders. One is Taiwan’s TTY Biopharm, which holds about 18%, and the second-largest shareholder is the National Development Fund, Executive Yuan, with a 17% stake. With the receipt of the $50 million milestone, TTY Biopharm will benefit from its subsidiary’s success, with an estimated contribution of about NT$1.62 per share in profits for the fourth quarter.
"Onivyde" is a nanotechnology-based irinotecan anticancer drug formulated as a liposome, primarily used for treating metastatic pancreatic cancer patients who have failed treatment with the standard drug gemcitabine. Since 2015, the drug has been gradually launched in major countries in the United States, Europe, and Asia. PharmaEngine’s main licensing partner for "Onivyde" is the French company Ipsen, which has sublicensed sales rights for Europe and Asia to another French pharmaceutical company, Servier.
PharmaEngine explained that the company’s revenue sources come from three main areas: first, sales in the Taiwan market, where "Onivyde" has been approved for first-line pancreatic cancer treatment, and PharmaEngine is currently applying for National Health Insurance reimbursement, with the goal of securing reimbursement approval this year; second, royalty income from the European and Asian sales rights provided by licensing partners; and third, milestone payments from licensing partners at different stages.
According to the agreement between PharmaEngine and Ipsen, PharmaEngine can receive three milestone payments for "Onivyde." The first payment of NT$569 million was received in 2020, and the second milestone payment was settled based on the growth in "Onivyde" sales in Europe, Japan, and mainland China in the past year. PharmaEngine stated that the third milestone payment will reach $60 million, and they expect another milestone next year due to the excellent market performance of "Onivyde."
Resource: 2024銷售達標 智擎癌藥獲16億里程碑金
