Seeking Alpha, Favoring Cytodyn
Philippines
Back in April, CytoDyn publicized an agreement in the Philippines with Chiral Pharma Corporation for 200K vials of leronlimab to critically ill COVID-19 patients. According to the company’s press release, “Chiral is continuously receiving CSP requests and is hoping to accelerate the availability of leronlimab under CSP to thousands of critically ill COVID-19 patients.” CytoDyn stated that they expected to file leronlimab’s CSP authorization this week (5/9-5/15).
Brazil
In Brazil, CytoDyn announced they have signed a commercial agreement with Biomm S.A. to sell leronlimab for all current indications for leronlimab including COVID-19. Considering Brazil has been struggling with COVID-19, we could see a high demand for leronlimab to thwart the ever-rising death count. CytoDyn anticipates starting distribution of leronlimab in Brazil this week.
I would like to point out that this agreement appears to cover all of leronlimab’s indications, so CytoDyn might have just signed a lucrative long-term agreement that goes well beyond COVID-19.
India
Recently, CytoDyn announced they have signed a partnership with Macleods Pharmaceuticals to sell leronlimab in India. Macleods is a conglomeration of several leading business segments located around the globe and is one of the biggest pharmaceutical companies in India. In a recent interview CEO Nader Pourhassan and CMO Dr. Scott Kelly, they mentioned Macleods is going to use CytoDyn’s existing COVID-19 data to get an emergency use authorization to start distributing to hospitals while we wait for the clinical trials to begin.
It is important to note that Macleods reached out to CytoDyn about them being able to sell leronlimab in India. Admittedly, we would have to assume CytoDyn was looking to find a partner in India considering the current outbreak. However, having a global company reach out directly to CytoDyn demonstrates the demand for leronlimab to help save lives in the world’s second most populated country. Not only could this agreement lead to significant revenue, but it could encourage Macleods to expand the agreement to other countries.
Rapidly Developing a Distribution Network
One must concede that CytoDyn’s management has been hard at work over the past couple of months securing these supply and distribution deals. Most small-cap biotech/pharmaceutical companies would host a parade for closing one commercial partnership over the course of one year. Meanwhile, CytoDyn closed three commercial deals in about a month. Keep in mind, the Philippines, Brazil, and India are some of the most populated countries on the globe. In fact, together, these three countries hold roughly 20% of the world’s population.
Upgraded Outlook
Admittedly, things were not looking too good after the CD12 data readout but Nader was quick to move beyond the U.S. FDA and start addressing the COVID-19 hotspots. A few months ago, I was hoping Nader was going to find a way to keep the COVID-19 story going long enough to bridge to the HIV resubmission. Now, I believe these fresh deals have instantly transformed CytoDyn’s long-term outlook by establishing a path to substantial revenue. Regardless, if leronlimab is ultimately approved by the U.S. FDA, CytoDyn’s COVID-19 efforts have yielded some success.
Remaining Cautiously Optimistic
I still remain cautiously optimistic about these deals and how they impact CytoDyn over the next few months. The company might have signed a few deals, but the company needs the regulatory agencies in those countries to give leronlimab a EUA for CytoDyn to start collecting meaningful revenue. Even if leronlimab gets the green light to be marketed, we don’t know the finer details of these partnerships and what CytoDyn will be banking per dose of leronlimab. Yes, these are positive updates for the company, but we don’t know how much revenue will be coming and when. Consequently, investors should not be blindly going all-in on these announcements and should remain vigilant to see if any of these agreements generate any revenue.
Philippines
Back in April, CytoDyn publicized an agreement in the Philippines with Chiral Pharma Corporation for 200K vials of leronlimab to critically ill COVID-19 patients. According to the company’s press release, “Chiral is continuously receiving CSP requests and is hoping to accelerate the availability of leronlimab under CSP to thousands of critically ill COVID-19 patients.” CytoDyn stated that they expected to file leronlimab’s CSP authorization this week (5/9-5/15).
Brazil
In Brazil, CytoDyn announced they have signed a commercial agreement with Biomm S.A. to sell leronlimab for all current indications for leronlimab including COVID-19. Considering Brazil has been struggling with COVID-19, we could see a high demand for leronlimab to thwart the ever-rising death count. CytoDyn anticipates starting distribution of leronlimab in Brazil this week.
I would like to point out that this agreement appears to cover all of leronlimab’s indications, so CytoDyn might have just signed a lucrative long-term agreement that goes well beyond COVID-19.
India
Recently, CytoDyn announced they have signed a partnership with Macleods Pharmaceuticals to sell leronlimab in India. Macleods is a conglomeration of several leading business segments located around the globe and is one of the biggest pharmaceutical companies in India. In a recent interview CEO Nader Pourhassan and CMO Dr. Scott Kelly, they mentioned Macleods is going to use CytoDyn’s existing COVID-19 data to get an emergency use authorization to start distributing to hospitals while we wait for the clinical trials to begin.
It is important to note that Macleods reached out to CytoDyn about them being able to sell leronlimab in India. Admittedly, we would have to assume CytoDyn was looking to find a partner in India considering the current outbreak. However, having a global company reach out directly to CytoDyn demonstrates the demand for leronlimab to help save lives in the world’s second most populated country. Not only could this agreement lead to significant revenue, but it could encourage Macleods to expand the agreement to other countries.
Rapidly Developing a Distribution Network
One must concede that CytoDyn’s management has been hard at work over the past couple of months securing these supply and distribution deals. Most small-cap biotech/pharmaceutical companies would host a parade for closing one commercial partnership over the course of one year. Meanwhile, CytoDyn closed three commercial deals in about a month. Keep in mind, the Philippines, Brazil, and India are some of the most populated countries on the globe. In fact, together, these three countries hold roughly 20% of the world’s population.
Upgraded Outlook
Admittedly, things were not looking too good after the CD12 data readout but Nader was quick to move beyond the U.S. FDA and start addressing the COVID-19 hotspots. A few months ago, I was hoping Nader was going to find a way to keep the COVID-19 story going long enough to bridge to the HIV resubmission. Now, I believe these fresh deals have instantly transformed CytoDyn’s long-term outlook by establishing a path to substantial revenue. Regardless, if leronlimab is ultimately approved by the U.S. FDA, CytoDyn’s COVID-19 efforts have yielded some success.
Remaining Cautiously Optimistic
I still remain cautiously optimistic about these deals and how they impact CytoDyn over the next few months. The company might have signed a few deals, but the company needs the regulatory agencies in those countries to give leronlimab a EUA for CytoDyn to start collecting meaningful revenue. Even if leronlimab gets the green light to be marketed, we don’t know the finer details of these partnerships and what CytoDyn will be banking per dose of leronlimab. Yes, these are positive updates for the company, but we don’t know how much revenue will be coming and when. Consequently, investors should not be blindly going all-in on these announcements and should remain vigilant to see if any of these agreements generate any revenue.
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