NEW YORK, NY / ACCESSWIRE / August 15, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on M Pharmaceutical, Inc.
The report is available here: MQ Update Note.
M Pharmaceutical, Inc. ("M Pharma", CSX: MQ, OTCQB: MPHMF, FWB:T3F2), is a development stage biomedical company focused on addressing unmet needs in the multi-billion dollar market for obesity treatment. Over the last several months M Pharma has undergone a reorganization and has new leadership focused on bringing to market novel solutions intended to improve the health and quality of life people suffering from obesity. M Pharma's pipeline is now centered on two orally-administered solutions for obesity/ weight loss: 1) Trimeo technology expandable capsules; and 2) Chelatexx (C-103) reformulated orlistat capsules. The company still retains rights to the Trimtec gastric management system and the eMosquito wearable blood monitor; however, management has opted to focus M Pharma's attention and resources on developing the Trimeo technology and C-103. We expect the company will minimize further investment in Trimtec and eMosquito and move to divest / partner these lines.
Additional highlights of the note are as follows:
C-103 acquisition to headline narrowed focus on obesity
M Pharma completed the acquisition of C-103 from Chelatexx LLC (Chelatexx) on July 15, 2016, which provides the company with a novel reformulation of Orlistat, an FDA approved medication for weight loss sold by Roche (prescription Xenical® 120mg capsules) and in Glaxo Smith Kline (OTC Alli® 60mg capsules). C-103 represents a large potential opportunity for M Pharma as orlistat is an effective weight loss medication that had peak sales of $900mn in 2007 before sales declined due to well-publicized, embarrassing side effects (steatorrhea, fecal incontinence and frequent / urgent bowel movements) and competition from generics. The C-103 reformulation aims to match orlistat's efficacy without these side effects. M Pharma has patent coverage for the C-103 reformulation of Orlistat and is pursuing a 505(b)(2) regulatory pathway for C-103, which should provide an accelerated time to market. The company believes $200mn+ in peak sales is possible for C-103 and expects to be in a position to begin marketing the product in 2019E.
Large market opportunity for Trimeo and C-103
With the addition of C-103 to its portfolio, M Pharma now has two promising, orally-administered therapies in its pipeline for obesity and weight loss (the other being Trimeo, an expandable capsule designed to displace volume in the stomach). If clinical trials are successful, M Pharma is projecting commercialization of C-103 to begin in 2019E and Trimeo to begin in 2020E, and projects peak sales potential of approximately $200mn and $130mn per year, respectively. This lineup positions the company well to address unmet needs in the multi-billion-dollar obesity market. Indeed, obesity is emerging as a global epidemic, as 27% of the world's population is overweight or obese, with 2.8mn people dying annually from being overweight / obese each year. Given the large opportunity for these two programs, M Pharma expects de-emphasize Trimtec and eMosquito. We believe the company will seek to extract value from these programs through divestures / partnerships.
Adjusting target to CAD $0.85 for M Pharma
We see the acquisition of C-103 as a significant advancement for M Pharma and are encouraged by the company's focused pursuit of the large market for obesity / weight loss therapies. Our price target moves to CAD $0.85 and is based on management's view of 330mn+ in combined peak sales for Chelatexx and Trimeo. We view M Pharma as an intriguing high risk / high reward investment targeting a large and growing segment of the healthcare industry.
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About M Pharmaceutical, Inc.
Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to the intended acquisition of C-103 from Chelatexx, LLC, the Company will focus on the development of its Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity, for which it has exclusive rights.
M Pharmaceutical trades on the Canadian Securities Exchange (CSE) under the ticker symbol "MQ" as well as on the OTCQB as "MPHMF" and FWB (Frankfurt Stock Exchange) as "T3F2."
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