Sep 08 2011
NORTHBROOK, Illinois—Horizon Pharma is focused on the development and commercialization of therapeutics focused on pain and inflammation. The company has two approved products, Duexis, the combination of an NSAID and GI protectant that is expected to launch in the U.S. in 4Q11, and LODOTRA, a programmed-release low-dose prednisone currently marketed in select countries in Europe. The company intends to market both products themselves in the U.S. and out-license ex-U.S. rights. Both drugs have patents filed, allowed, or issued that do not expire until the 2025 time frame. Horizon intends to ramp up its sales force from 75 reps to 150 by the end of 2012 to accommodate the LODOTRA U.S. launch. Horizon management has worked diligently to set up the reimbursement structure for Duexis as well as the sales and marketing strategy. We believe these efforts are especially key to the overall success of the uptake of both drugs in a crowded market. Both drugs have strong differentiating characteristics, but will require strong marketing prowess to compete with already entrenched products.
• Two approved products ready for launch mitigates risk. Both Duexis and LODOTRA have completed Phase III pivotal studies in the U.S. with statistically significant results. Duexis is approved and LODOTRA could receive approval in 1H12. Both drugs will address markets that generate multi-billions of dollars annually in sales.
• The power of the management team should not be underestimated. We believe the success of Horizon will come from the marketing and sales strategy implemented by the company for its two therapeutic drugs. Given the competitive nature of this launch, we believe management’s extensive prior experience is key. An unsuccessful launch with low formulary uptake and low prescriber volume is a real possible risk.
Edward Nash
(646) 562-1385
[email protected]