Good evening, everyone. Welcome to this video conference where we'll be updating our portfolio following last night's announcement regarding our program MDC IRM. I'm Nicolas Gorg. Tonight, I'm replacing David Jose, our Head of Communication and usual presenter, because he's just been a dad. Congratulations to him.
With me this evening, we have Christophe Broat, our CEO Joel Ricchar, our Chief Development Officer and Raimo Rangaud, our CFO. Good evening, gentlemen.
Good evening.
Good evening. Hello, everyone. Before giving you the floor, Christophe, I remind you that you can ask us question through the chat module on the right side of your screen. Christophe, first, I suggest we come back to the news we announced last night about MDC IRM.
Yes, Nicolas, thanks a lot. Good evening to all. It's another great day at Medin Cell. As you saw yesterday, the FDA accepted the filing of Teva for MDC IRM. It's the last step now before the approval of the product expected in 2022.
I'll remind you that Teva even expects launch in 2022.
Thank you, Christophe. Now can you remind us what are the characteristics of the product and tell us a bit remind us about the Phase 3 study?
Yes. So we have developed formulations for Teva on 2 products, 1 month duration and 2 month duration. The Phase 3 that was completed last year showed very strong data comparing relapses in the treated group versus placebo.
Thank you, Christophe for this update. Now if you don't mind, let's talk about schizophrenia and the market of schizophrenia globally and in the U. S.
Yes, just as a reminder, schizophrenia is a very significant and bad pathology. It's about 1% of the world population with dire consequences on the patients, as you know, hallucinations, etcetera on the people, their families, their friends, on society, on the health systems that have to cover the cost of treatments and hospitalizations. One number I'd like to mention is that in the U. S, 20% of hospital beds are related to schizophrenia. So you can understand that any treatment that improve compliance, such as a long acting injectable, has a lot of value for the payers.
If we look at the numbers, we can see that the U. S. Market today is EUR 3,700,000,000 worldwide EUR 6,100,000,000. In the U. S, it's growing at 14% CAGR, very regular growth, 14% CAGR means it doubles if the trend continues, 5 to 6 years.
The value of the compliance that is brought by the long acting injectables is such that the payers are paying a very significant price for the long acting injectables in the U. S. Market, anywhere from 19,000 to 25,000 per year per patient. So significant numbers, significant market and significant growth.
Thank you, Christophe, for that update. Now I may, if you don't mind, let's talk about the metrics of that collaboration, Ms. Teva.
Absolutely. Thank you very much, Nicolas. So in the collaboration with Teva, we have, let me remind you, 3 products under development with Teva. On the financial metrics, so it's Teva, they paid Merencell to do the formulation of the 3 products. But in addition to that, Teva is financially developing the 3 products and will ensure the commercialization of all of them.
So when I say that they're responsible, they are paying for they're assuming all the cost per clinical and clinical for the development of the products. Now for the remuneration from Menin Cell consists in 2 parts. First one are milestones that can reach up to $122,000,000 per product. The bigger chunk of those milestones relate to sales upon the attainment of certain level of sales. Mendocell has already started receiving some of the milestones related to development.
So if we aggregate the 3 products, milestones can reach up to $366,000,000 And in addition to that, Merensel is entitled to royalties, mid- to high single digit and that from the first sales that will be generated by the products.
Thank you very much, Jaime, for that update.
Jaime, I think you forgot to mention something we discussed yesterday because Jaime and I were trying to find a way to communicate on what does it mean, a market of EUR 3,700,000,000. And we checked and we found out that if this EUR 3,700,000,000 market was a single product, today it would be the 90th product in the by ranking order of sales in pharma. So you can understand how significant this is.
Thank you, Christophe. Christophe, you again. We wanted in this update to address another point, which concerns polymers, one of the main ingredients of our technology.
Yes. And this is a very important strategic point, Nicolas. As a reminder, the key ingredient in our formulations are our own customized patented polymers. These polymers are what allows us to do better formulations than competition, subcu injections, when most of the products today are intravascular injections. So very early in the life of the company, we built an alliance with Corvion, the number one manufacturer of biopolymers in the world.
It's a Dutch company. It's public on Euronext. And this alliance has evolved in a full blown BV joint venture, which produces all the polymers for our partners. This has allowed us to control the quality, to reduce the risk of scallop, which is a huge risk for small biotechs and also to protect the intellectual property related to polymers. Polymers are a very complex material to manufacture.
And you can understand that the quality of the polymer would impact the release of the drug. So it's absolutely fundamental to control the manufacturing and therefore control the quality and the release of our products.
Thank you, Christophe, for that update. Before handing over to Joel to continue on our update of the portfolio, Christophe, maybe a sum up of that amazing news that we announced last night.
Yes, month after month, mid- and this CIM is moving forward. This is the last step now before the expected approval in 2022 and the launch of the product. Huge news for MEDDINE cell. I know very, very few companies have reached this stage. We are among the happy fuse.
This technology, the underlying BIPO technology on NDC IRM, Joel, is the same as all our other products. And therefore, this evolution favorable evolution of MDC IRM benefits all our other programs, Joel?
Yes, you are right, Christophe. This is exactly the same technology or proprietary technology based on our block PLA developed and the data obtained during the development of IRM will enable us to accelerate the development of the overall products of the pipeline and derisk our development projects.
Thank you, Guillermo.
Thank you, Joel. Let's talk about other programs now and 2 other ones we have in partnership with Teva.
Yes, for sure. We have actually exciting news on our portfolio of projects. And first, I would like to remind you of the excellent news regarding IRM and the expected commercialization in 2022. The step that we have gone through yesterday is a really remarkable step for the project and for MED Intel. And believe me, in drug development, this is a major one and we would like to have it very often, of course.
Now I would say that for the other 2 projects in partnership with Teva, which are NDC TJK and NDC the next steps for these projects before the end of the year.
Thank you very much Joel for that update on our programs and partnership. With Stephen now, let's talk about our 3rd product in clinical, MDC CWM.
Yes. So MDC CWM is a project that we have in partnership with AIC in Canada. And actually, I would like to mention that the AIC is going to follow now the recommendations from the FDA as regards with safety of Phase 2 study. And actually, this Phase 2 study will be rescheduled in 2022. And AISC has confirmed that this will not have any impact on the timelines of the project.
As you know, this is an open label study, which is not on the critical path for the registration and the recruitment will be much simpler than the Phase III since actually there are less exclusion criteria. So for the time being, AIC is preparing the Phase III for efficacy and safety. And so this is a randomized study with a control and actually, AIC is expecting the agreement from FDA on the protocol for the Phase III and the IND by the end of 2021. And as you know, there will be 2 Phase III, which is absolutely necessary in the treatment of pain according to the recommendations from FDA.
Maybe, Joelle, I'll spend a few seconds reminding you of what NDC, CWMA is. It's about reducing pain, inflammation after larger surgeries, especially orthopedic surgeries. The first indication is total knee surgery. It's 1,000,000 surgeries a year in the U. S.
The most painful surgeries of all. About 20% of patients become addicted to the prescription opioids with the consequences we know. Remember, before the pandemic, this was the priority of the FDA. The current products in that field treat pain, but for a very small period of time, maximum 3 days. This product here intends to treat pain for weeks and inflammation for months.
So it's really a change of paradigm.
Thank you very much to both of you for the update for that project. Now let's move on with 2 other projects supported by the Gates Foundation and by Unite as well.
Yes, sure. So we have a collaboration with Gates Foundation on a contraception project. This is a 6 months formulation, so our technology make it possible to get to this release period. And we have also another collaboration on the prevention of malaria with United. And both projects are actually on time and progressing as per plan.
Thank you, Joel. Finally, there is 3 program left, 3 internal programs, MDC G JRT, MDC KPT and MDC TTJ.
Yes, sure. So we have these 3 internal projects, which are in preclinical development at the present time. For TTG, we are a little bit more progressed and I would like to really focus on another excellent news actually since we are launching a Phase 2 of proof of efficacy in prophylaxis of COVID-nineteen in Europe, including France, with oral administration in continuous dosing over 1 month to simulate a long acting formulation, which is actually what we are going to develop. So this is a clinical trial with a very rigorous design with control with placebo, randomized, double blinding and multicentric. Just to say that this is a real study with, let's say, high reference in the field of prophylaxis of COVID-nineteen.
And actually, there's, I would say, no means to put these results that will be obtained in doubt. So this is exactly what we want to develop right now. So the dossier, the regulatory dossier has been filed in France first last week and will be also filed in other European countries beginning of September And the protocol will be available on clinicaltrials.gov site in the next weeks. The results are expected in the next months. And actually, our objective for this Phase 2 are 3 thoughts.
I would say, first, we would like to confirm the efficacy and prophylaxis in controlled conditions and under conditions that cannot be in doubt, I would say. And so this is, I would say, very controlled by the passcode, randomization, double blinding that will really provide confidence into the results that we will get. 2nd point is to define and optimize the development plan for the long acting injectable formulation, which is our goal. And third point is that in the present context where the regulatory agencies are not so favorable regarding Ivermectin, we would like to convince them to prioritize this approach and accelerate their processes for regulatory approval?
Yes. Joel, I think I will like to interrupt you for a couple of seconds and pay tribute to Professor Jacques Descottes. Jacques was a Professor Emeritus, world known toxicologist. He has been working with MedinCel for 10 years and he contributed significantly to our ivermectin COVID program by making a full review of ivermectin safety, a landmark study that is now used worldwide and also by helping us look at all the scientific data and clinical data and all the work we've done in the last year and a half. So thank you, Jack.
Yes. I just would like to add that regarding this project, based on the strong Phase II results that we will get, we have selected also a long acting acting injectable formulation, which is ready to go to regulatory and clinical development.
Thank you both of you for that update. So that's the complete update of our portfolio. Now let's have a look a bit further. Let's see what is expecting in a year from now. You can see on your screen the portfolio in a year.
Maybe Joao, you want to say a few words about it.
Yes, sure. So as you can see, the pipeline is really progressing very well and very efficiently. And what is really impressive is that in 2022, we would have one product on the market based on our technology, 6 of our products in clinical development with a major progress of these projects towards filing of a product. So we have excellent perspectives on the year to come. And I would also say that we have new programs that have been initiated in early development and a part significant part actually of my teams are working today on new projects in proof of feasibility step.
Thank you very much, Joel. Before moving on to the question we received, maybe Christophe, you want to add a few words to sum up that presentation.
Yes. Thanks Nicolas. Thank you Joel for the comprehensive explanations. First, we are seeing a formidable franchise in long acting in anti psychotics being built with our lead program and MDC IRM and potentially 2 more following the first one. This is an extremely important program for MediInsel, which validates the technology.
Beepo is used in all our programs and any favorable evolution of the lead program is of course, benefiting and derisking the others. These steps are increasing dramatically. The visibility, the credibility of Medin Cell and which should allow us to execute new partnerships in the next few years. And of course, if you summarize if I summarize again the coming news flow before the end of the year, potential news on the 2 other programs with Teva, the start of Phase 3 on MDC, CWM and the start of our Phase 2 with all of them.
Thank you, Christophe. Now let's move on to the question we received. The first one we received via email a bit before this conference. Are you aware of the PR of Janssen issued today about 6 months Yes, it
is intramuscular. And the only Yes, it is intramuscular. And the only thing I can tell you is that we fully trust our partner.
Mike was off. Let's move on to the question received from the chat module on the right side of your screen. Bertrand is asking us, hello, is there any PDUFA date for MDC IRM application? Or if confidential, can you guide for the usual review lens under 505(2)?
Yes, sure. So I would say that typical review time is expected to be about 12 months. So we're expecting approval in 2022.
Yes. And as a reminder, not only approval, but Teva expects the launch in 2022.
Thank you, Joao and Christophe. Next question, whom is going to manufacture the products? I think we are referring to MDC, IRM, Teva or Medastel? Joel?
Yes, the product will be manufactured by Teva.
Okay. Thank you. That was very easy to answer. Next question, when will the Phase III data on your LII schizophrenia be published? And what do you believe big sales in the U.
S. Could be? Christophe maybe?
Well, we can't comment on the big sales. I gave numbers on the market potential, its growth. It will depend, of course, on the ramp up and the market share that Teva will obtain. You can check on Teva's website. They are planning to disclose further data on the Phase 3 on the NDC IRM in as soon as October and will publish as well in peer reviewed
journals. Thank you. Next question maybe for you or Jaime. When do we expect or do you expect the next milestone payment from
Teva? Right. So if we're talking about MTCI AURM, let me remind you that for the last fiscal year that ended on the 31st March 2021, we registered some sales related to milestone. Milestone that corresponds to the positive Phase III results of MDC IORM that was published in the beginning of the year. And when we reduced it, we accounted for $5,000,000 The next milestone that we'll receive for this product, I cannot disclose the amount, but it will be upon the approval of the product.
And from then on, we will reach we will touch milestones upon the commercial milestones that I described earlier on. Now when we regard when we look at the other projects, we're expecting milestones as the other products like TJK, ANG move forward, we will be able to reduce to and to account for these milestone payments.
Thank you, Raimi. Next question regarding MDC, CWM, Olivier Singh. On clinicaltrials dot gov and ISC websites, we see that the safety Phase 3 is on standby. It is a strategic choice made in partnership with the FDA in a favorable scenario when could we have the final results of Phase 3 of efficacy and safety for this program? Joel?
Yes, sure. So FDA has asked for a further data regarding both safety and efficacy obtained in CONTROL study under blinding conditions. And this is the reason why actually the strategy has been adjusted and decision has been made by AIC to first get to this Phase III under controlled conditions to get this additional safety and efficacy data and then to come back later on, on the safety study, which is the open label 1. So exactly, this is there's a lot of communication between FDA and AIC and this is the best way now to develop the product.
Thank you. Thank you, Joel. Next question, can you share details of MDC TJK like the generic molecule being used and route of administration? Christophe, maybe? [SPEAKER JEAN FRANCOIS VAN
BOXMEER:] No, we cannot. There will be information on clinicaltrials dotgov once and if Phase III starts?
Thank you, Christophe. I think that's the last question we received today about MDC TTG program as per the communication from today, Phase II studies in the pipe. Will you take help from a partner or will Medin Cell continue this program alone?
Well, that's one of the objective of this Phase 3 is that with rigorous Phase 2, sorry, with rigorous data and favorable results, it is obvious that this will raise interest for partners given the context.
Thank you, Christophe. We just received a new question at this stage still about MDC, TTG. At this stage, could you say there are indeed proof preclinical or confidence that ivermectin can heal COVID-nineteen, Christophe?
This program is the consequence of a year and a half of work from our scientists, our teams. We've pretty much talked to every principal investigator in the world that's conducting trials on Ivermectin, looked at the data, and scrutinized all the favorable signs and even more the any sign that could be not favorable. We are doing a weekly watch on all the papers that are being published on Ivermectin. We organized even an international workshop a year ago. Yes, the all the signals in Profilaxy are extremely encouraging and have actually higher statistical significance than albuminetein in early treatment even.
And there is also scientific foundations from people such as Jean Pierre Jean Jure at 10% CuPastor supporting the mode of action. So there's a lot of data out there, but there is a need for an extremely rigorous, randomized, double blind, placebo controlled study. This is what we are doing.
Thank you very much, Christophe. I think someone is asking us to show again the slide where you should stand 1 year from now. So I'm going to put it back on the script, maybe Joel, you can comment it again just to be sure, so we all have the same information about the portfolio, the targeted portfolio in 1 year.
Yes, sure. So as already mentioned, so actually, we are going to see tremendous progress of our portfolio in the next 12 to 18 months. And actually, as you can see here, we have a situation which is very impressive since we could get to a situation where we would have one product on the market based on technology, 6 other products in clinical development with a major progress towards filing of our projects and NDA application. So actually, we have excellent perspective for the year to come, I would say. And we have also over new projects coming, which are initiated in early development and a significant part of my teams are working on these new projects in early development and proof of feasibility.
So these are excellent news for the next year to come. And I think we are all proud of this situation.
Yes, we are. Thank you, Joel. There is no more question for tonight. So I think that's it. We're going to wrap it up now.
Thank you to Christophe, Joel and Jaime for being with me today in the studio for that update. And I guess we'll talk to you soon when we have more news. Bye.
Thank you. Thank you. Thank you. Bye. Take
care. Bye.