Israeli dermatological company Sol-Gel (Nasdaq: SLGL) announced that it would developing another generic product in cooperation with Perrigo Company (NYSE:PRGO; TASE:PRGO). Sol-Gel has developed a method of wrapping drug molecules in a nanometric wrapping that improves absorption of the drug in the skin. The company has independent products in development and in clinical trials, as well as products that it develops for other companies.
Sol-Gel, which held its IPO in early 2018, has seen its share price fall 40% since then, pushing its market cap down to $135 million.
Sol-Gel will develop the new generic product, about which not much has been said, by itself. It will then transfer the clinical trials, which the two companies will finance jointly, to Perrigo. If and when the product is approved for marketing, Perrigo will market it in the US and the two companies will share the proceeds equally.
This is Sol-Gel's fifth cooperative effort with Perrigo. One product developed jointly by the two companies for treatment of Papulopostular Rosacea has already reached the stage of tentative approval by the US Food and Drug Administration (FDA), and is due to soon begin generating revenue for Sol-Gel. Perrigo and Sol-Gel also share a historical connection: Perrigo's dermatological activity is based on Agis, a company that was controlled by Mori Arkin when it was sold to Perrigo in 2005. Arkin is also Sol-Gel's controlling shareholder after acquiring a controlling interest in 2014.
Sol-Gel's lead independent product, also for treatment of Rosacea, is in Phase III clinical trials. The company announced that it had recruited half of the patients for this trial. In the coming months, Sol-Gel will also begin a clinical trial of its product for treatment of acne. The company competes in both areas with Israeli company Foamix Pharmaceuticals Ltd. (Nasdaq: FOMX), which has developed a delivery method for drugs for treatment of skin diseases utilizing foam. Foamix, which also uses a mixed model of independent and generic products, has a $232 million market cap.
Published by Globes, Israel business news - en.globes.co.il - on November 4, 2018
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