Exopharm: Preparation, Demonstration and Reward
As a biotech stock, order or to maximise the financial returns from our technologies and products there are a number of aspects to the business of Exopharm. As a headline, we see ourselves as world leaders in a new type of regenerative medicine – harnessing exosomes as the ‘secret sauce’ from stem cells.
Exopharm plans to generate revenue through licensing deals of its products (Plexaris and Exomeres) and its technologies including the purification technology called LEAP.
Some deals may happen independent of clinical trials – examples being potential licensing the LEAP Technology for non-competitive uses and commercialising ‘engineered exosomes’.
The Exopharm business that started in 2013 is similar to a professional football team.
A professional football team is also complex and made up of many parts – players, coaches, management, supporters, funding, recruitment, medical treatment etc.
With a football team, there are three main things happening – preparation, demonstration and then (maybe) reward as year premiers.
Members of the football team have spent years of preparation and training – on their own and as a team. Preparation is the foundation for success.
The team needs to demonstrate their skills and determination over many games – the premiers are the ones who play better more often and persevere after a loss.
Winning is the ultimate reward and built upon both preparation and demonstration. Turning up is not enough.
Exopharm was started in 2013 with one person. Today Exopharm is a public company, with around 19 employees and around 940 supporters (shareholders).
Our people are collectively highly experienced and cover all of the areas essential for our business – manufacture, analytics, testing, partnering, intellectual property management and investor relations.
We have done our ‘preparation’ and are ‘match-ready’
Exopharm demonstration and reward
So, the next steps for Exopharm are demonstration and reward.
Over the next years our focus is on demonstrating our products, technologies and capabilities and delivering rewards along the way by doing financial deals (‘Licensing’).
Exopharm is demonstrating:
- The LEAP purification platform technology – a platform technology with many uses;
- its core therapeutic products (Plexaris and Exomeres); and
- other uses of exosomes (sometimes referred to as ‘extracellular vesicles’) and other intellectual property and know-how.
The LEAP purification technology could be partnered as-is. LEAP solves a problem of interest to many companies seeking to progress exosomes as products. Exopharm’s team is extending the capabilities of LEAP and lodging further patent applications to further protect our core manufacturing technology.
Exopharm could potentially license other companies to use LEAP, so long as their activities would not directly compete with our own products (Plexaris or Exomeres).
Exopharm is taking the Plexaris product into clinical trials to demonstrate safety and efficacy – thereby building value and demonstrating the technology. Exopharm also has plans to take the Exomere product into clinical trials. The Plexaris and Exomere products could be partnered after testing.
The LEAP Technology also allows us to build value in areas such as ‘engineered exosomes’ and exosomes as ‘diagnostics’.
Engineered exosomes require exosomes to be loaded up with certain ‘cargo’ or otherwise modified to achieve particular biological outcomes. There are a number of opportunities in the engineered exosomes field that Exopharm is working on.
The use of exosomes as a ‘window’ into the health of patients is another emerging and exciting field in the area of diagnostics. Already this area has attracted merger and acquisition activity and many research publications. There are a number of opportunities in the exosome diagnostic field that Exopharm is working on.
In summary, Exopharm is working hard to demonstrate its value to potential partners across a number of areas.
The monetary reward for Exopharm’s shareholders could come from multiple significant financial deals over time.
Deals are already being done in the exosome field. Potential partners are looking at the exosome field and observing progress – some deals are done at relatively early stages if the field is particularly attractive or of strategic importance to the partner. Some deals can be done with preclinical assets/ projects.
With a number of demonstration activities underway, Exopharm will highlight our potential value to partners.
In the biotechnology field it is difficult to anticipate the timing of transactions, but Exopharm has already positioned itself – with a strong team, excellent preparation and a key platform technology.
What this means for shareholders and investors
Sometimes it will be hard for shareholders to see how each pixel of activity fits within the bigger picture.
So, whilst shareholders might focus on a single clinical trial outcome, rewards may surprise.
But if you think about our numerous demonstration activities you will see how they are directed towards delivering multiple rewards.