Q BioMed Inc has given itself a big shot in the arm, adding a multi-million dollar asset in the form of an equity stake in long term partner Mannin Research, which has a drug development pipeline poised to be a multi-billion dollar blockbuster franchise for years to come.
The company has converted its long-term royalty agreement into a 15% equity stake in private Mannin - a holding, which has a current valuation of C$30 million. It also means Q BioMed will receive a royalty payment of $20 million on realization of future net sales.
"Mannin has a portfolio of drugs that has a total addressable market of over $150 billion per year," said Denis Corin, Q BioMed CEO, in a statement.
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"Multiple large pharma companies have indicated interest in bringing the Mannin drugs to patients in markets around the world.
"We expect that at least one major strategic deal will be announced by Q1 of 2023 and additional transformative economic transactions later in 2023, further validating the MRI drug pipeline and its blockbuster potential.
"These would be very significant value creating events for both QBIO and Mannin shareholders. QBIO is so proud to have been an integral part of this development from the beginning."
Q Biomed said it expects the value of its investment to increase, due to "quantifiable near-term and medium-term catalysts, including the signing of commercialization agreements by MRI, and completion of clinical milestones as part of its drug development program."
In addition, Mannin's drug development pipeline and companion diagnostics, are estimated to achieve a net present value (NPV) close to the billion-dollar mark as it moves from its near-term clinical milestones to commercial revenues, it added.
Corin continued: "The value of our investment into the Mannin pipeline to date is not recognized at all on our balance sheet.
"The conversion of our agreement to this value-based equity ownership allows us to immediately recognize approximately CAD$5.0 million in shareholder equity and we anticipate this value to grow substantially over the next 12 months," he added.
Dr. George Nikopoulos, CEO of Mannin added: "Together we believe our first-in-class group of therapeutics will make a real difference in the lives of patients suffering from ARDS, glaucoma, and kidney disease, which is really why we do what we do.
"We were proud to partner with QBIO from the start and are grateful for their investment in us and what they have contributed to our progress. We are equally happy to complete this conversion so that we can better communicate the value that QBIO has in Mannin and its future success."
Q BioMed is focused on accelerating the monetization of biomedical technologies through rapid innovation and collaborative partnerships with industry leading researchers.
It believes its assets in oncology, vascular disease, and rare orphan diseases address unmet medical needs and large markets.
Contact the author at giles@proactiveinvestors.com