MOD3 Pharma

MOD3 Pharma works with pharmaceutical partners to improve the solubility of hard-to-dose therapeutics.  The company’s core Peptelligence drug delivery technology allows for oral delivery of peptides and BCS class II, III, and IV small molecules. With MOD3 Pharma, SWK has the opportunity to become more operationally oriented, actively building a wholly-owned portfolio of milestones and royalties throughout-licensing activities.

 

Synergistic & Value Enhancing

  • Natural extension to SWK’s existing royalty monetization business, which generates income via royalties on life science products in a mix of structures.
  • MOD3 offers opportunity to create a wholly owned portfolio of milestones and royalties on IP-protected biotherapeutics with substantial upside optionality.
  • Industry comps – Ligand Pharmaceuticals and Emisphere Pharmaceuticals – highlight significant potential.

Highly Favorable Deal Economics

  • Attractive valuation, with SWK buying an undervalued portfolio of “call options” on current & future licenses, owned drug candidate assets, and manufacturing operations.
  • Risk-adjusted economics from existing/expected licenses anticipated to exceed purchase price.
  • SWK believes near- to medium-term licenses may exceed $50.0mm in milestones and royalties.

“Game-Changing” Platform Technology

  • Peptelligence® enables injectable-to-oral conversion of peptides and difficult-to-formulate small molecules.
  • Targets substantial market and serves as a cornerstone for an “asset-light” licensing revenue model.
  • Franchise-like model leverages partners’ significant R&D and marketing/commercialization spend.
  • Existing 505(b)(2) pharmaceutical development candidates, plus the ability to internally expand the owned-product portfolio, create an engine for additional future licenses.

“Game-Changing” Platform Technology

  • MOD3 Pharma possesses proven technology, clinical experience, and in-house manufacturing, which is unique compared with peers—some of which have multi-hundred-million-dollar market values.
  • Potential to expand the Peptelligence platform via acquisition of dosing technologies and COMO assets.