Antibiotic double tap for Paratek

Snippets

Considering that it is so hard to make money out of novel antibiotics, it is surprising that so many companies are trying. Paratek is a case in point – the Boston biotech will be celebrating two approvals that stemmed from its labs this week. The FDA approved both IV and oral formulations of omadacycline, now called Nuzyra, for two serious types of bacterial infection that cause patients to be hospitalised, while the out-licensed project sarecycline, or Seysara, will be sold by Almirall as a treatment for acne. The latter approval will trigger a $12m milestone payment and future royalties, which will come in handy as Paratek prepares to launch Nuzyra early next year. Analysts are predicting sales of around $400m by 2024, according to EvaluatePharma’s consensus, although many shareholders are probably hoping that commercialisation will not be troubling Paratek for long. With a market cap of only $300m, the company is looking far from expensive compared with consensus NPV. The sellside’s view of the opportunity is likely to be on the rosy side, of course; the company faces a tough battle to convince payers to give up using cheaper generic antibiotics with a similar mechanism of action. 

Paratek sales forecasts
  Annual Sales WW ($m) Product NPV ($m)
Product 2019e 2024e  
Nuzyra (omadacycline oral) 26 362 550
Nuzyra (omadacycline IV) 7 55 122
Seysara (royalties) 3 17 65
Total 36 433 737
Source: EvaluatePharma.

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