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14 July 2020 | Corporate

SUDA Pharmaceuticals rights issue

SUDA Pharmaceuticals rights issue

Baker Young Corporate Advisory are currently the Lead Broker for the SUDA Pharmaceuticals entitlement (rights) issue, which has new shares being issued at 2.5 cents and includes one free option for every three new shares. This rights issue is set to close on 22 July 2020, and Baker Young will be placing the shortfall.

Currently trading at 3 cents, SUDA Pharmaceuticals is a small cap biopharmaceutical company which is focused on the reformulation of established drugs into oral sprays (oro-mucosal) for better absorption and activity within the body (bioavailability).

Additionally, SUDA recently attempted to acquire a material licensing transaction but suffered a few headwinds. The reason for highlighting this is the renewed board and management have a pedigree in deal making and it is part of the company’s strategy to bring additional value to shareholders.

Suda’s lead commercial product is ZolpiMist, an oro-mucosal spray version of Ambien for the treatment of insomnia that is partnered in certain regions with Teva and Mitsubishi Tanabe. This oro-mucosal spray version of Ambien has a faster onset than the pill form, a better outcome for the patient. SUDA has the rights for this spray outside of North America and has out-licensed rights in Mexico, Brazil and Chile to Teva, and in Singapore, Malaysia, the Philippines and Korea to Mitsubishi Tanabe. Royalties are typically double digit and include a handling fee. Therapeutic Goods of Australia are expected to grant approval for ZolpiMist before Christmas.

SUDA also has Anagrelide in the pipeline, an oral spray version for the treatment of solid tumors. Anagrelide is an effective agent in the treatment of solid tumors, but use has been limited by cardiotoxicity (damage to the heart muscle). SUDA believes that an oro-mucosal spray version could minimise these issues by reducing first-pass generation of a highly potent cardio-excitatory metabolite of the drug in the liver.

Besides ZolpiMist and anagrelide, SUDA is also using its technology to reformulate Sumatriptan for migraines (partnered with Strides) and has programs with Zelira Therapeutics and Cann Pharma Australia on cannabinoid formulations. Additionally, there are projects on undisclosed targets being funded by Sanofi and Ordesa.

Click here to read a research report from Edison which values SUDA at 13 cents.

For more information about how to participate in this and similar deals please click here.