The Lyon-based biotech has announced the dosage of a first patient in China in the phase 3 program of its new diabetes treatment. This publication pushed the stock price up by more than 7% on Monday. Adocia will be able to continue its developments in the region, with the help of partner Tonghua Dongbao.
Adocia on the rise after a new advance in the treatment of diabetes | Photo credits: Adocia
Adocia has reached a new milestone in its development, by engaging the dosage of the first patient in the phase 3 program, in which 1,300 patients with type 1 or 2 diabetes are participating. The biopharmaceutical company specializing in the development of diabetes treatments will perform these tests at 100 clinical research centers in China. The company will be supported by its local partner Tonghua Dongbao, who will submit the results to regulatory authorities. With this new treatment called “BC Lispro”, the deputy general manager of Adocia, Olivier Soula, declared: ” NOTWe are proud to be one of the few companies to bring innovative insulin from the lab to phase 3 “.
For the group, this step is also important financially because it allows it to collect $5 million in payments from its Chinese partner. The company can even expect to earn an additional $30 million if future development phases are successfully completed. The potential is great, the new treatment having been licensed by Tonghua Dongbao for China and other Asian regions, which represent 200 million people suffering from these diabetes. The weight of the Chinese laboratory is however to be qualified: it records less than 500 million euros in annual turnover, far from the activity of the large Western pharmaceutical groups, which could complicate the administrative validation of the treatment.
A very promising market
This new “BC Lispro” treatment, a new generation insulin, presents many interests for the Chinese authorities, concerned by the spread of diabetes since 11% of adults in the country suffer from it. The new molecule indeed allows a more sustained distribution in the bloodstream and a reduction in the risk of hypoglycaemic events. The speed of action of the treatment will also improve the quality of life of the patients.
The advantage of developing such a product also lies in the nature of the Chinese market. Currently, the only drugs in the world with similar effects are Fiasp, from the pharmaceutical group Novo Nordisk, and Lyumjev, from the Eli Lilly laboratory. However, these treatments are not authorized in China, which leaves the market currently without competition. For Adocia, it would also be an opportunity to take its “revenge” on Eli Lilly, who broke off their partnership in 2017. The license obtained by the Lyon biotech from its Chinese partner should indeed pay off big. The explanation lies in the fact that the Chinese insulin market is very buoyant: in 2018 it represented more than 3.5 billion dollars, but could reach nearly 5 billion by 2025.
The announcement is well received on the stock market on Monday. The stock gained more than 7% at the best of the morning.
RG