Proteomics International Laboratories (ASX:PIQ) leadership is following up recent recognition of its global marketing achievements with a string of international engagements and a special emphasis on Asian markets.
Over the past two weeks, the Perth-based life sciences company has been represented at a major biosimilars conference in the U.S., an Australasian health showcase in South Korea and a medical exposition in China.
Proteomics managing director Richard Lipscombe was in Shanghai last week at the invitation of Chinese biopharmaceutical company Newsummit Biopharma to attend the sixth China International Medical Expo and to begin discussions on potential licensing and funding partners.
Lipscombe went on to meet with key opinion leaders in relation to the commercialisation in China of Proteomics’ predictive and diagnostic test for the early diagnosis of diabetic kidney disease (DKD) PromarkerD.
These meetings included discussions with the director of the Shanghai Diabetes Institute and president-elect of the Chinese Diabetes Society, Professor Weiping Jia, who also attended the formal signing ceremony for Proteomics’ existing PromarkerD agreement with Newsummit.
The Newsummit agreement was entered into in February this year prior to the company’s ASX listing. It is a significant milestone, and the first commercial agreement for PromarkerD. It is also the first-ever proteomics derived in-vitro diagnostic to enter the massive Chinese market.
Asia, and China in particular, represents a key market for PromarkerD as the incidence of diabetes in the region has increased dramatically in recent years, with chronic kidney disease being one of its major complications. World Health Organisation figures indicate that 120 million Chinese have diabetes and are at risk of kidney disease – presenting a massive and growing market for Proteomics and PromarkerD.
Newsummit is China's leading drug and medical device development business by volume. It has successfully achieved more than 20 new investigational new drug approvals on behalf of clients, and has been involved in more than 450 projects for new drugs and medical devices.
More international headway
This week, Lipscombe also presented the company’s leading proteomics-based technology platform and services to the exclusive Australasian Life Science and Healthcare Showcase in Seoul, South Korea.
The event was open to only a small number of Australasian life science and healthcare companies and was attended by around 50 strategic and corporate investors and fund managers from South Korea, seeking capital links and transaction opportunities between Korea and innovative Australian companies.
Also, Proteomics global head of business development Chuck Morrison recently attended the fourth International Conference and Exhibition on Biologics and Biosimilars in the U.S. to showcase the company’s new biosimilars data pack.
Biosimilars and analytical services are key parts of Proteomics’ business. The company uses its proteomics-based technology platform to test and validate the protein composition of a wide range of products. It has major application in the biosimilars market, with manufacturers of generic protein drugs seeking to have their compounds validated as a like-for-like against blockbuster drugs they seek to replace as they come off patent.
Twelve protein-based drugs with combined revenue of $50 billion will come off patent by 2017.
These marketing and brand exposure efforts earned Proteomics the prestigious Health and Biotechnology Export Award last month at the Western Australian 2015 Industry and Export Awards.
This award recognised Proteomics’ progress over the year in internationalising its products and addressing cross-border trends in protein-based drug markets. It also validated the company’s world-leading expertise and capabilities in the industrial-scale study of the structure and function of proteins.
PromarkerD progress
The company’s strongest development momentum in recent weeks has focused on its flagship product, PromarkerD, which was granted a U.S. patent last month, a critical milestone in a country which represents the world’s largest health care market.
The patent provides protection as both a predictive and diagnostic test in the U.S.
An Australian patent for the product was granted in September and is valid until 2031.
Marketability of PromarkerD is supported by growing rates of DKD and the fact that there is currently no available test for predicting the onset of the disease.
Current urine-based tests for DKD are not robust, with results susceptible to variation due to modest unrelated factors.
PromarkerD’s capacity to generate cash via licensing fees, upfront payments and royalties is strengthened by a diversified range of commercialisation options in various niche diagnostic test applications.
Avenues for monetising the technology have been identified in a range of medical applications; including specialist diagnostic tests run by clinical laboratories, clinical pathology tests produced by diagnostic companies and companion diagnostic tests used to monitor a patient's response to drug therapy.
Analysis
Proteomics’ recent efforts to consolidate its Asian marketing connections and expand exposure of its products overseas represent a strong signal of confidence in the company business model and investor support.
This support has been underlined by a 134% increase in Proteomics stock over the past five months to A$0.44 as well as the recent award acknowledging the company’s global marketing ability.
Proteomics also benefits from a diverse operating model across three synergistic proteomics-based business units in massive growth markets.
The specialist proteomics market alone represents a massive global market estimated to be worth $20.8 billion by 2018.
Proteomics is likewise pursuing business opportunities in the drug discovery sector, with a focus on painkillers and antibiotics. Within this space, the peptide therapeutics market is currently estimated to be worth $17 billion.
Also, the diagnostics (or biomarkers) market, where the company focuses on DKD and Alzheimer's disease, is estimated to double in size to $45.6 billion by 2020.
The International Diabetes Foundation estimates that 387 million people globally have diabetes.
The U.S. Center for Disease Control estimates that 35% of adults with diabetes have chronic kidney disease and 20% will end up with kidney failure. The World Health Organisation says 120 million Chinese have diabetes and are at risk of kidney disease.
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