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NEW YORK, April 4, 2019 /PRNewswire/ -- Timelines on the next generation of antibody discovery may be getting shorter. Potentially incentivized by a new study on the monoclonal antibody therapy market, analysts recently projected a double-digit 10.5% CAGR by 2022, and revenues to touch $140 billion. Driving this surge is the development of new therapeutic drugs from Big Pharma giants such as AbbVie Inc. (NYSE:ABBV), Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) and Thermo Fisher Scientific Inc. (NYSE: TMO), as well as from contract research organizations (CROs) such as ImmunoPrecise Antibodies Ltd. (TSX-V:IPA) (OTC:IPATF).
Working hand in hand, Big Pharma has been increasingly leaning on CROs to help take care of the drug development. Each step along the way to discovery could require a different CRO—unless it's done by full-service therapeutic drug developers ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) who uniquely cover each step of the process from start to finish.
Founded in Victoria, Canada, ImmunoPrecise Antibodies Ltd. (TSX.V:IPA) (OTC:IPATF) recently expanded its footprint into the highly active pharmaceutical center, Massachusetts. The company formally launched a newly formed wholly-owned, Cambridge Massachusetts-based subsidiary, called Talem Therapeutics.
The main mission of Talem is to focus on the discovery and development of next-generation, fully-human, monoclonal therapeutic antibodies targeting neurology, immuno-oncology, gastroenterology, inflammation, and rare/specialty diseases. Using proprietary antibody discovery platforms and innovative technologies, Talem will be producing a rich pipeline of high quality and distinct antibodies.
Research Leading to Discoveries
Domestically, the US drug industry spends approximately $45 billion annually on research and development (R&D). Majority of the research is going into biologics (vaccines, blood components, gene therapy, etc)—a sector that's growing the entire global pharmaceuticals market at a CAGR of 5.8%, from US$934.8 billion in 2017, to a projected US$1.17 trillion by 2021.
Embedded within the entire market is a niche that is still possibly being underserved. While the antibody discovery CRO segment topped over US$100 billion in 2017, it's projected to grow to US$125 billion by 2020.
For CROs, success comes from increased exposure, as each new contract with Big Pharma enhances valuable and lucrative relationships. The CRO business is good, as exemplified by ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) who saw its revenue increase in 2018 by 106%. The momentum has continued, as the company recently reported record Q3 2019 results, with revenues up 228% for the first 9 months of fiscal 2019.
According to a research report from Cormark, the company is expected to reach projects an impressive estimated run-rate tracking of CAD$16.6 million in fiscal 2019—tripling its 2018 numbers. By 2020, gross revenue is expected to hit CAD$31.9 million.
With operations now spread across the USA, Canada, and the EU, the company has established an impressive international presence. The announcement of the launch of Talem Therapeutics formally put ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) in the same area code as some of the majors they want to provide services for, such as Pfizer Inc. (NYSE:PFE) that has its 280,000 sq ft state-of-the-art R&D hub also located in Cambridge, Massachusetts.
The need for Talem was driven by demand for safe, therapeutic, monoclonal antibody (mAb) candidates with more complex target product profiles, all driving a need for more robust discoveries. Talem was founded to expedite the high-powered discovery and development of custom therapeutics produced as both internal assets for ImmunoPrecise Antibodies Ltd. (TSX.V:IPA) (OTC:IPATF) as well as in response to partnership requests of the company from Big Pharma.
Talem Therapeutics will develop on-demand and in-house antibodies through pre-clinical stage prior to licensing for clinical partners. Success for the new entity will likely be driven by the speed and adaptability of ImmunoPrecise's platforms, which enable Talem to quickly respond to targets, built off years of experience and expertise in the antibody discovery sector. Along with the designated pre-clinical programs, Talem is already engaging in negotiations on joint research and development (R&D) programs with numerous pharmaceutical companies.
Under its umbrella, ImmunoPrecise Antibodies Ltd. (IPA) (IPATF) already has more than 200 clients, having also recently announced an agreement with an undisclosed top-15 global pharmaceutical company to discover novel antibodies using ImmunoPrecise's proprietary hybridoma technology.
Further Monoclonal Antibody Therapy Developments
Developers of the psoriasis drug Skyrizi, AbbVie Inc. (NYSE:ABBV), are celebrating the drug's recent approval in Japan. The potential blockbuster drug is being touted as important, especially due to sales of its Humira inflammatory disease mega-blockbuster having been affected by cheaper competitors outside of the US. AbbVie has also been linked to CRO Atomwise through a partnership announced by the CRO.
Pfizer Inc. (NYSE:PFE) recently stated it had acquired a 15% equity interest stake in privately-held gene therapy company Vivet, and secured an exclusive option to acquire all outstanding shares of the company. Pfizer openly said it will look to collaborate with Vivet on the development of VTX-801, which Is a proprietary treatment for the life-threatening liver disorder, Wilson disease.
Looking to secure its second multiple myeloma nod in newly diagnosed patients in the US, Johnson & Johnson (NYSE:JNJ) isn't winning many friends with England's cost watchdogs. The National Institute for Health and Care Excellence (NICE) agreed to back a multiple myeloma combo that includes J&J's Darzalex, Takeda's Velcade, and corticosteroid dexamethasone in patients who have received one previous treatment. However, the Cancer Drugs Fund (CDF) has only agreed to cover the first use and not routine use.
A top player in the Global Research Antibodies Market, Thermo Fisher Scientific Inc. (NYSE: TMO) is a world's largest maker of scientific and laboratory equipment. In 2013 the company acquired biotechnology company Life Technologies for approximately US$13.6 billion. The acquisition catapulted Thermo Fisher, to the forefront of the field of personalized medicine. In 2017 they acquired leading global manufacturer of drugs for clinical trials – Patheon N.V., for $5.2 billion. Patheon's drug manufacturing capabilities under its arsenal of services enabled Thermo Fisher to grab a bigger slice of the contract development and manufacturing market.
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