Zecuity is a combination of sumatriptin, a generic version of the long-acting migraine medication originally developed by GlaxoSmithKline (NYSE: GSK ) and marketed as Imitrex, and NuPathe's proprietary SmartRelief technology, which uses electronic pulses to deliver medication subcutaneously. In clinical trials, there was an undeniable benefit compared to the placebo. Zecuity induced freedom from headache pain in 18% of patients, partial headache relief in 53% of patients, and 84% of patients were nausea-free -- all after two hours. Comparatively, the placebo produced results of 9%, 29%, and 63%, respectively, based on those same questions.
Glaxo is on the patent cliff since Imitrex is now sold as a generic, so they need Zecuity to keep their market share...they will have new patent protection for the patch and they can use their own Imitrex instead of a generic version that is supplied to Zecuity.....does this make sense? This IMHO
PATH - As of 02/12/13, 09:51:34 PM: 18 Insider Transactions.
Sector: Healthcare Industry: Biotechnology
Prev Close:$3.58 Avg Vol(3m): 800,850 P/E: 0.00 EPS: -1.64
Email this page to a friend. Insider Transactions for PATH
Buy/Sell* Filed Date Subject Symbol Acquirer Pct Owned Details
B 2013-02-12 14:45:02 NUPATHE INC PATH GLAXOSMITHKLINE PLC 8.91%
This is what I said in my Jan 30 post:
"Glaxo as of September 30, 2012, had $5.837 billion in cash and marketable securities. (Means)
The company already owns about 7.9% (1.16 million shares) of PATH common stock and because of this they likely have had some alone time with NuPathe's execs and the company's science group. (Insight/Knowledge)
Glaxo has been losing share in the migraine market for at least a couple of years now but they are still a major player. Last year they attained about 12% of the triptan prescription market. Glaxo also has products that could benefit from the use of Nupathe's LAD and SmartRelief delivery systems . (Motivation)
In researching Glaxo's ownership of other biotech stocks Nupathe is the only one I found with who Glaxo didn't have a collaboration agreement. (MO)"
Now Glaxo has added another 3 million shares to its portfolio and owns 8.91% of Nupathe. They sure look like the lead contender to partner with to me.
I do recall your post.....thanks for sharing...I guess it is more fresh due to the additional investment Glaxo added to the 1milllion shares they already had according to your research. BTW...I still can't verify that Glaxo owned 1.16M shares....I checked on Fidelity and Yahoo for both institutions and insiders. Can you state your source for this?
better for GSK to buy @ todays going rate of 3.66 then pay upwards of say,,,$10?? Why not buy out all the rest of available shares,,,OH thats right the price would rise so fast it would make ur head spin and make me vellie happy!!! ,,,jmo,gallen
I remember your post and it made excellent sense then and even more sense now! Another company I am in BMTI had WMGI buy over a million shares of them just before they made their buyout offer. Partnership or buyout is the question. At the very least a partnership with GSK would be very beneficial to both companies saving time and money for PATH and giving GSK a new product to launch with a long shelf life. From a financial standpoint I think it would make more sense for GSK to buy PATH versus being their partner. PATH fully diluted would have a market cap of around 170 million so a 350-500 million buyout offer would be peanuts for GSK considering the 1 billion being paid out for MAPP for a not yet approved Migrage product.
Well then what are they waitng for? Its just been about a month since approval. If Glaxo was going to be their partner seems like it would be out by now. I do agree though it is weird they are holding so many shares of nupathe.
Surprise nobody has commented regarding this post. Would Nupathe want to dilute its stock by offering additional shares in order to finance manufacturing of Zecuity by Q4? In doing so it would drop share price and would it not upset Glaxo? Or would Glaxo care?
Zecuity is a transdermal patch worn on the thigh or arm, which delivers controlled amounts of sumatriptan, the most widely prescribed migraine medication in the market. Sumatriptan was the key ingredient in Imitrex, a GlaxoSmithKline migraine headache treatment that came off patent in 2009.
The Zecuity patch uses NuPathe’s proprietary transdermal delivery technology, called Smart Relief, which allows for the rapid, yet tightly controlled, delivery of medicine using a process called iontophoresis. Iontophoresis relies on a mild electrical current to transport medication through the skin. The delivery method is designed to overcome side effects, which include a feeling of tightness in the chest and neck, that some patients get when taking sumatriptan.
Last week, the company received an additional patent for Zecuity that company officials said would extend the product’s patent protection, should it secure FDA approval, through June 2028.
Look at the background of Path's director---Jim Datin was Group Director of Corporate Business Strategy and Planning at GlaxoSmithKline ----he is supposed to help find a commercial partner:
In addition, NuPathe announced that, in conjunction with the financing, James A. Datin, Executive Vice President and Managing Director, and Brian J. Sisko, Senior Vice President and General Counsel at Safeguard Scientifics, Inc. (NYSE: SFE), along with Richard S. Kollender, Partner at Quaker Partners Management, L.P. were appointed to NuPathe's Board of Directors. Jeanne Cunicelli, Investment Partner at Bay City Capital LLC, and Dr. Gary Kurtzman, Senior Vice President and Managing Director at Safeguard, resigned from the board.
"We welcome Jim, Brian and Richard to our Board, and expect their significant industry and business expertise to be strong assets for NuPathe as we work to obtain approval for Zecuity™, seek a commercial partner, and conduct pre-launch activities for this valuable new treatment," said Armando Anido, Chief Executive Officer at NuPathe. "We also thank Jeanne and Gary for their valuable contributions to the company."
Jim Datin is currently Executive Vice President and Managing Director at Safeguard Scientifics, a growth capital provider to life sciences and technology companies. Jim brings to the NuPathe board more than 25 years of experience as a successful CEO, who has raised capital for entrepreneurs to grow companies, and has turned around troubled companies throughout the United States, Europe and Asia. At Safeguard, Jim leverages this expertise to drive partnership opportunities for both life science and technology partner companies, and has earned a multinational track record of success. Prior to Safeguard, Jim was CEO of Touchpoint Solutions; Group President of Dendrite International; Group Director, Corporate Business Strategy and Planning at GlaxoSmithKline (NYSE: GSK); CEO of Isuta Holdings Berhad; and Director, International Business at Baxter International, Inc. (NYSE: BAX) /Merck KGaA. Jim currently serves on the board of directors of NovaSom, Putney, Hepatitis B Foundation, and the University City Science Center.