Investment summary

Hybrigenics is developing an analogue of vitamin D3, inecalcitol, for treating prostate cancer and severe psoriasis. The drug could be launched in 2017 and generate revenues of c $4bn across these two major indications. A Phase IIa trial in castrate-resistant prostate cancer with inecalcitol in combination with docetaxel (Taxotere) demonstrated its potential in this indication. A Phase II study in 60 patients with severe psoriasis has recently completed recruitment; data due in mid-2012 could lead to the out-licensing of inecalcitol. The company has funding to start its Phase II study of inecalcitol in chronic lymphocytic leukaemia and the indication contributes €11m of a total €15m increase in our valuation to €73m. Its revenues (up 43% in 2011) and €8.8m equity line with Yorkville could fund its operations until the end of FY14.

Last updated on 23/04/2012

Industry outlook

Inecalcitol is being developed in three major indications and faces much competition from existing drugs and those in development. However, its good safety profile could give it an advantage and allow its use in combination with other established therapies.

Last updated on 23/04/2012