- Pharmena (WA:PHR)is a leading Polish cosmetics and biotech company. It was founded in 2002 by scientists from the Technical and Medical Universities in Lodz in order to commercialize their discovery of the active substance 1-MNA (a niacin metabolite). PHR owns 85 patents for all oral and dermatological applications of 1-MNA in Europe, North America and Asia, which are valid until 2025/26.
- PHARMENA’s main business area is the production of dermocosmetics, which is profitable on all levels. In the Hair Care segment, the company is market leader in Poland when it comes to unit sales. Other 1-MNA-based products, on which PHR is working, are a dietary supplement and a drug (called TRIA-662), which both target the segment of dyslipidemia. The objective of the dietary supplement, which has already received a positive opinion as novel food from the London-based FSA and will likely be approved for sale in the EU in Q1/16, is to offset the lack of 1-MNA in the body, which stimulates the production of prostacycline, and thus reduce the risk of atherosclerosis. In contrast to niacins, the drug, which completed Phase II of research on 30 October 2015, aims to lower triglycerides and increase good cholesterol, but with no serious side effects e.g. flushing, skin burning.
- The global market dermocosmetics is estimated at >USD 20bn. In Poland, it is worth PLN 1.2bn and is expected to grow at a CAGR 14-20E of 7.1%. The segment for dietary supplements is worth >USD 100bn worldwide and forecast to increase at a CAGR of 6-7%. By 2023E, the global market for dyslipidemia drugs is forecast to grow at a CAGR of 9.4% to USD 37.9bn. As all major drugs in the segment will soon loose patent protection, global pharma companies are keen to buy new innovative therapies. Thus, we expect that if results of Phase II in Q1/16 are positive, PHR will quickly find a buyer for its 1-MNA drug.
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