For research companies, the share price is a business-critical component for financing in the long lead up to commercialisation. A launch is often far in the future while uncertainty remains considerable. Navigating to achieve an attractive evaluation, persistently and honestly, is therefore an important parameter for success.
InDex Pharmaceuticals focuses on immunological diseases and has developed the cobitolimod product for the treatment of left-sided ulcerative colitis – a bowel disorder that about 400,000 suffer from worldwide.
InDex believes that cobitolimod, given approval from the US FDA, has the potential to achieve annual sales of more than USD 1 billion. This is an industry in which the gross margin typically amounts to about 90%. Despite this, the company was “only” valued at about SEK 700 billion at the end of 2021, while share liquidity was low.
InDex hired Comir to develop a communication strategy until commercialisation. The initial study concluded that the stock market did not have knowledge of the actual potential or the way in which this would be realized. To clearly lay out the path to launch, InDex therefore announced the plan, specified the strategy in detail and commenced a programme to raise its profile to both institutional investors and the general public. The plan was kicked off with a capital markets day at which researchers, those in charge of the phase III study CONCLUDE and managers of InDex’s other markets presented their work. The programme, coupled with well-defined objectives, also facilitates the Board’s plans for raising capital in the future.
“With Johan’s help, we created a structure to clarify our strategy and make it easy for the share market to comprehend.”
Peter Zerhouni, former CEO