Biosergen AB is a biopharmaceutical company that was listed on Nasdaq First North Sweden in June 2021. The company develops innovative antifungal drugs based on the latest biopharmaceutical research and development from laboratory facilities in Trondheim, Norway and several other locations around the world.
The company is developing BSG005, a potential antifungal drug that has demonstrated significant safety data and potency advantages over competing antifungal agents. BSG005, which is in clinical phase I (the first of three phases of development towards the market), could potentially reach the market as early as 2026/27
1.5 million people (particularly those with compromised immune systems such as cancer patients, diabetes patients, organ transplant recipients and HIV/AIDS patients) die each year due to fungal infections – both in the West and in the rest of the world – even though USD 16.7 billion is spent annually on antifungal drugs. Biosergen is developing an antifungal drug that is significantly more effective and with a significantly better side effect profile than the existing drugs developed 40-70 years ago. Biosergen therefore has blockbuster potential (annual sales of more than USD 1 billion) for its drug, which is expected to be launched in 2026.
The main problems with the existing antifungal drugs for serious (fatal) fungal infections on the market are:
1) They do not kill the fungi, but only inhibit them
2) They cause incurable kidney damage
3) They increase the resistance of the fungi
Biosergens, on the other hand, are 1) fungicidal, 2) do not cause kidney damage and 3) do not give rise to resistance in the fungi. In addition, it is significantly more effective/kills several different types of fungi. Biosergen therefore expects that their product will be used as the primary product (first line), which is why the market potential for Biosergen’s product is large.
In Q1 2023, Biosergen has presented positive topline data in a phase 1 study with the drug BSG005. The study has confirmed that the drug is safe and very important without the same serious side effects as existing medical drugs. Although the results so far indicated that the study would be successful, the results are a significant price trigger event. The next step is discussions with the FDA about the phase 2 study, where the drug BSG005 will show its efficacy in sick patients (rather than healthy patients in the phase 1 study).
The risks of an investment in Biosergen are, like all other biotech companies, related to the development and results of the studies and the authorities’ (in particular the FDA’s) assessment of the products. In addition, Biosergen, like other biotech companies, has a financial risk, as the company has a negative cash flow that requires ongoing financing.
Kapital Partner performs or has within the last 12 months performed corporate finance, market relations, investor relations, Certified Adviser or other advisory activities for the following listed companies: NORD.investments, Biosergen, InterMail, Pila Pharma, Hypefactors, Curasight, Evaxion, Re-Match, Audientes, Mdundo.com, Nexcom.