The announcement signifies a milestone as the EPO has approved EP patent No. 3145533, encompassing Reponex' innovative treatment method. This method consists of topically applying a hydrogel containing granulocyte-macrophage colony-stimulating factor (GM-CSF), sucralfate, and hyaluronan to accelerate wound healing. The combination helps stimulate the proliferation of cells related to the healing process and tissue regeneration.

Analyst Group’s view

“Analyst Group assesses that the granted patent application marks a milestone in PEG’s IP and out-licensing strategy, as it provides legal protection for the Company’s drug candidate and serves as an important asset during negotiations with potential licensing partners. The global chronic wound care market is estimated to witness steady growth in the coming years, as exemplified by a report from Fortune Business Insight, where they estimate that the global chronic wound market was valued at USD 12.5bn in 2022 and is expected to grow at a CAGR of 6.8%, reaching USD 21bn by 2030.1 The increasing prevalence of diverse chronic wounds worldwide creates a significant need for treatment products, leading to increased adoption of wound dressings, devices, and other related products. Moreover, the growing elderly population is anticipated to drive market growth, given that the senior demographic often experiences slower healing capabilities.

Analyst Group estimates a prevalence of 8.5m patients suffering from chronic wounds in PEG’s target markets by 2024, with the Company potentially reaching a peak market share of approximately 2.8% (2030-2034E). The figure below illustrates Analyst Group’s estimated pre-risk-adjusted royalties during the forecast period, where candidates targeting the indication area of chronic wounds serve as a significant part of the total potential royalties. It's worth mentioning that PEG currently has three candidates addressing the chronic wound market (RNX-021-023), all in Phase II. Consequently, the potential royalties from RNX-022 are included in the potential royalties from Chronic Wounds. Another important aspect to mention is that the patent is valid until 2035 but has the option to be granted a Supplementary Protection Certificate (SPC), which would extend the validity for an additional five (5) years, lasting until 2040. This is accounted for in our Bull scenario. In summary, the indication area targeted by RNX-022 presents immense potential, offering PEG a substantial market share opportunity. A granted patent not only strengthens PEG’s IP portfolio but also opens doors to strategic partnerships, potential royalty streams, and consequently, potential cash flows."

Read Analyst Group’s comment here

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This is a press release from Analyst Group regarding the publication of an comment on Pharma Equity Group. Readers may assume that Analyst Group has received compensation for making the comment. The Company has not been given an opportunity to influence the parts where Analyst Group has had opinions about the Company, future valuation or anything else that could be considered a subjective assessment.