Mitsubishi Tanabe is making a huge mistake: Why we believe that Neuroderm (NASDAQ:NDRM) is a lemon.

Neuroderm PDF Report Download

We believe that Mitsubishi Tanabe and its board need to immediately put a hold on the Neuroderm acquisition. We don’t know what representations have been made to Mitsubishi Tanabe by Neuroderm or others pushing this acquisition, but our research findings demonstrate the following:

  • Neuroderm has misrepresented the SIZE of the market, the RELEVANCE of their clinical study, and the EFFECTIVENESS of their ND0612 pump-delivered drug.
  • AbbVie’s Duopa/Duodopa pump is already ESTABLISHED in the market, has a SUBSTANTIALLY LOWER adverse effect rate, conducted its trials on an APPROPRIATE subject pool, and did not rely on SUPPLEMENTARY oral levodopa or entacapone, to boost its clinical trial results, unlike Neuroderm.
  • Neuroderm claims the size of ND0612’s target market across the USA and EU is ~350,000 patients. AbbVie’s superior pump has targeted the SAME market, only capturing ~3,500 patients.
  • The ND0612 drug is marketed towards ADVANCED stage Parkinson’s sufferers, however the efficacy study for the drug was conducted on EARLY stage Parkinson’s sufferers, which require substantially lower doses of the active drug component in order to be effective. We believe the FDA will closely review the stage 3 trials to ensure ND0612 is tested on an APPROPRIATE and RELEVANT subject pool.
  • Neuroderm’s ND0612 delivery pump is made up of GENERIC COMPONENTS and presents ZERO R&D proprietary value.
  • ND0612 is now only being tested for bioequivalence, not efficacy. While this may lead to a speedier FDA approved drug, Mitsubishi Tanabe is meant to be buying Neuroderm for its TECHNOLOGY. We see this concession as further evidence of Neuroderm’s weak R&D value, which Mitsubishi Tanabe thought it was buying with this acquisition.

 

Author: Viceroy Research

A group of individuals that see the world differently.

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