The Next Paladin Labs

[Guest ajc]

A Fresh Stock With A Veteran Face

 

After selling off his specialty pharmaceutical company Paladin Labs Inc. in a deal worth $3-billion, Montreal entrepreneur Jonathan Goodman is starting from scratch with a new drug distribution venture.

 

The sale of Paladin closed Friday, a complex cash and stock arrangement in which the Canadian firm merges with Pennsylvania-based Endo Health Solutions Inc. under a new Irish-based holding company. Paladin will cease to exist as a separate public company, while the new Endo International PLC will trade on Nasdaq and the TSX.

 

Mr. Goodman, who turned Paladin into one of Canada’s most successful marketers of specialty drugs – everything from allergy treatments to birth control pills to pain medications – is walking away from the company he founded in 1995 and grew to reach annual sales of over $200-million.

 

But under the terms of the deal, he is holding on to one Paladin product, a treatment for a rare tropical disease called leishmaniasis. He is using this drug, Impavido, as the base for a new company called Knight Therapeutics Inc., which is set to begin trading Monday on the TSX Venture exchange...

 

http://www.theglobeandmail.com/globe-investor/investment-ideas/a-fresh-stock-with-a-veteran-face/article17189152/

 

 

[Liberty]

Indeed, Mr. Goodman intends to go head to head with his old firm, and he has not signed any non-compete agreements as part of the sale of Paladin, in which he held about one-third of the stock.

 

“I hope to be their worst nightmare,” Mr. Goodman said.

 

That guy is not exactly subtle, but his record speaks for itself.

[jm25]

Check out Biosyent (TSXV:RX) - best way to describe it is a mini-Paladin Labs.

[Liberty]

Check out Biosyent (TSXV:RX) - best way to describe it is a mini-Paladin Labs.

 

Thanks for the suggestion, I'll have a look.

 

Can you share the elevator pitch on what you like about it? How's management? I see that like Paladin they don't like debt.

[jm25]

The company minimizes deal competition by focusing on niche products with peak penetration of between $2-15 million which is below the radar of mid and large pharma companies. Biosyent builds its sales and marketing teams around a product. This approach maximizes profit and minimizes costs, as sales teams are put in place only when needed and expand only when the product’s sales can support the expansion.

 

Biosyent has 4 approved products: one in growth phase (FeraMAX), two in launch phase (Cathejell + FeraMAX Powder) and another in pre-launch (women’s health product). The company defines growth phase as minimum 20% growth year over year in product sales. The pipeline has 2 products in regulatory phase that will be launched in Q4 2014 and management is confident it can source 3 more products for 2015 launch. We believe the company will have 9 products on the market by year end 2015.

 

- Great business model (like Paladin Labs). Minimal to no capex, strong growth

- Significant growth and margins

- Strong balance sheet (no debt)

- Strong Management team with large insider ownership

 

http://espacemc.com/en/investment-ideas/biosyent

 

Investor Presentation:

 

https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxiaW9zeWVudHxneDoxYjA3MzgzYzdjNDM5NWM5

 

If there's enough interest we can start up a thread for the Company.

[Yours Truly]

The company minimizes deal competition by focusing on niche products with peak penetration of between $2-15 million which is below the radar of mid and large pharma companies. Biosyent builds its sales and marketing teams around a product. This approach maximizes profit and minimizes costs, as sales teams are put in place only when needed and expand only when the product’s sales can support the expansion.

 

Biosyent has 4 approved products: one in growth phase (FeraMAX), two in launch phase (Cathejell + FeraMAX Powder) and another in pre-launch (women’s health product). The company defines growth phase as minimum 20% growth year over year in product sales. The pipeline has 2 products in regulatory phase that will be launched in Q4 2014 and management is confident it can source 3 more products for 2015 launch. We believe the company will have 9 products on the market by year end 2015.

 

- Great business model (like Paladin Labs). Minimal to no capex, strong growth

- Significant growth and margins

- Strong balance sheet (no debt)

- Strong Management team with large insider ownership

 

http://espacemc.com/en/investment-ideas/biosyent

 

Investor Presentation:

 

https://docs.google.com/viewer?a=v&pid=sites&srcid=ZGVmYXVsdGRvbWFpbnxiaW9zeWVudHxneDoxYjA3MzgzYzdjNDM5NWM5

 

If there's enough interest we can start up a thread for the Company.

 

Please do.

 

I've had this company on my watchlist for a while but haven't had the time to conduct analysis on it.  I also noticed that MicroCapClub is big on the company as well.

[Liberty]

Thanks jm25!  :)

 

I will dig into it when I have a chance, but I think it's worth creating a thread about it. It'll make it easier for find any information that is added to it over time than if it's scattered everywhere.

[jm25]

Thanks jm25!  :)

 

I will dig into it when I have a chance, but I think it's worth creating a thread about it. It'll make it easier for find any information that is added to it over time than if it's scattered everywhere.

 

Posted it here:

 

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/rx-biosyent/

[jouni1]

http://en.wikipedia.org/wiki/Miltefosine

 

i'm no doctor but the drug sounds interesting. possible cancer and hiv uses in addition to the rare (high-price?) tropical disease.

 

if the new co has the same number of shares as paladin its valued at roughly 88 million i think. sounds kind of steep.

 

something called 3487911 Canada Inc, which is the investment vehicle of goodman, has acquired 28,55% on 28th feb and now owns 31,65% of the stock. weird name for a company, right? are these number companies normal in canada? he also has 1,14% that he holds personally.

 

this one will be interesting to follow. the drug seems to be awaiting us approval and leishmaniasis  ;D seems to be huge in india. it's sold under impavido and miltex. does the fact that they did not mention the miltex name mean that the rights for the countries miltex sells in (Austria, Bulgaria, Chile, France, Germany, Italy, Lithuania, Romania, Singapore and Spain) are owned by someone else?

 

if someone has some info on the drug or anything, please post!