Adocia: An ally of choice in diabetes

Fair Value EUR19.5 (price EUR12.80)      CORPORATE

News published on March Wednesday 13, 2013
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Adocia has designed and developed a technology platform, BioChaperone®, which could improve the medical performance of already approved therapeutic proteins. Adocia has focused its developments specifically on the treatment of chronic diseases, such as diabetes and diabetic foot ulcer.

  • A unique technology platform. The innovation developed by Adocia could improve efficacy as well as safety of use of therapeutic proteins which have already proved their therapeutic application. Adocia has already developed a database of more than 250 BioChaperone which demonstrates the versatility of its platform and the ability to industrialize its innovation process. 25 classes of patents protect at global level this innovation.
  • Target markets have high potentials. The management has identified two approved therapeutic proteins. The first candidate is the insulin for diabetes therapy whose market value amounts USD17bn at present, and still sharply growing. The second candidate is a growth factor, PDGF, specifically for the treatment of diabetic foot ulcer, whose market value surpasses USD3bn. Adocia plans to develop its products with high technology potential not only for Europe/US/Japan market, but also for emerging countries with compatible costs.
  • A business model with attractive risk-reward. Adocia aims to sign partnerships with big pharmaceutical companies as soon as the "proof of concept" is established backed by clinical studies. This strategy has already realized its first success with the signing of a license agreement and collaboration with Eli Lilly (USD10m upon signing and USD156m of milestones plus royalties tiered with future sales).
  • Strong Cash position to finance development. End- 2012, Adocia disposed more than EUR30m cash allowing it to accelerate its clinical study plans, which is the key point for signing new partnerships.
  • Fair value at EUR19.5 per share. It is obtained through sum-of-the-parts analysis.

For more information, please contact Bryan, Garnier & Co Corporate Broking at +33(0) 1 56 68 75 00

This Report has been sent to you for marketing purposes. It is non-independent research within the meaning of the FSA rules. It is not being held out as an objective or independent explanation of the matters contained in it and should not be treated as such. It has not been prepared in accordance with the legal requirements designed to promote the independence of investment research. Accordingly, the Firm is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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