A specialty pharmaceutical company with 20-plus drugs in its North American pipeline
Targeting late stage, early commercialization drug therapies in rheumatology, autoimmune disease or pediatrics
Largest year-over-year revenue growth of 512% after 2018 amalgamation of three companies
After an amalgamation in 2018, the pharmaceutical company boasts three different business lines under its umbrella: Medac Pharma USA, an integrated commercial infrastructure focused on autoimmune diseases; Mexedus Pharma Canada, which focuses on autoimmune and pediatric disease in Canada; and a business development arm that continually adds new products to the commercial pipeline.
With more than 20 drugs in its Canadian pipeline and one in the US, Medexus specializes in getting late trial-stage pharmaceuticals through to commercialization.
A former Sanofi executive, CEO Ken d’Entremont founded Medexus Inc in Canada and led the transaction amalgamating the North American businesses. d’Entremont has established a pattern of strong revenue growth following the merger, with its most recent fiscal 3Q 2019 showing a 512% increase year-over-year.
In the pipeline
As a specialty pharmaceutical company, investors are laser-focused on Medexus’s pipeline of drugs at or near commercial use.
The Toronto-based company’s leading products are Rasuvo and Metoject, a unique formulation of methotrexate that is designed to treat rheumatoid arthritis and other auto-immune diseases. Also in the portfolio is Rupall, an innovative allergy medication.
Rasuvo and Metoject are both autoimmune treatments in the growth phase of Medexus’s drug portfolio, along with Rupall and Tricovel, which counteracts hair loss.
The company recently received Health Canada authorization to distribute new drug Treosulfan, a conditioning agent used before stem cell transplantation. While distribution in Canada is an important milestone for the company, the real tipping point will come when it is authorized south of the border. Currently in the US, Treosulfan is under clinical development and is being used in clinical trials on patients who desire to try a new treatment approach.
In May, a new formulation or Metoject was launched in Canada called the Metoject Subcutaneous 15 mg dose, a pre-filled syringe of methotrexate with a hypodermic needle attached. In a statement, CEO d’Entremont said that the new 15 mg dose gives physicians more flexibility to accurately prescribe an appropriate strength for their patients and offers patients a more convenient and comfortable option.
“We expect this dose to be a significant portion of our Metoject volume going forward,” he said.
In the US, the main driver is Rasuvo, currently the only drug in Medexus’s US portfolio. But the pharma company is investing heavily in its US operations to increase its American pipeline, with a dedicated team of 20 sales representatives, two regional managers and three inside sales professionals who focus on rheumatology. In comparison, the Canadian operations are driven by a team of 18 representatives at the sales level.
As Medexus advances its drugs through the pipeline, the focus of the company’s strategy will shift to finding more products to leverage existing commercial infrastructure. Medexus is targeting areas where it has commercial presence as well as operational experience and relationships, making North America an ideal testing ground for its business development strategy.
In the medium term, the company will add niche therapeutic areas outside of rheumatology, autoimmune or pediatric medicine to facilitate future growth with further acquisitions.
What the CEO says
After posting staggering year-over-year revenue increases in its first quarter post-merger, CEO Ken d’Entremont is not worried that Medexus won’t be able to keep the pace of its incredible growth.
“We’ll continue to grow organically for many years to come, even without the amalgamation,” he said in an interview with Proactive, “because so much of our portfolio is in a growth phase.”
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas