Biostock published May 25th an article about Iconovo that can be found in its entirety below

Last week, Iconovo announced its financial targets for 2026. In five years, the company expects to have ten projects in development and five launched inhalation products that generate royalties. In addition, the goal is to enter into 1 – 3 new customer agreements per year on the way there. All in all, this is expected to generate sales of 200 million SEK and an operating profit of 100 million SEK in 2026. Iconovo also sees two potential upsides: royalty revenue from innovative inhalation products as well as from royalty revenue from generic Symbicort in the US.

Iconovo develops complete inhalation products (both inhalers and respective dry powder formulations) that are licensed to other pharmaceutical and generic companies.  In exchange, Iconovo receives milestone payments for development work and royalty revenues once the products have been launched.

The company has now presented its five-year goals for the business based on customers projects in Iconovo’s project portfolio, as well as the company’s goal of bringing in up to three new projects per year.

Five market launches ahead

Iconovo, together with its customers, expects to be able to launch five products in the next five years. First up is a generic version of Symbicort, developed together with Amneal and expected to launch in Europe in 2023. Next, Iconovo expects to launch a generic Ultibro and Seebri with BNC Korea, a generic version of Relvar in the US, and an undisclosed product developed in collaboration with Intas.

Sales of 200 million SEK and operating margin of 50 per cent

One of Iconovo’s financial targets is to achieve a turnover of 200 million SEK in 2026, which is significantly more than the turnover in 2020 (17.8 million SEK). In 2026, total revenues are expected to consist of ongoing revenues for development work in the company’s various projects as well as royalty revenues from the five launched generic products Symbicort, Ultibro, Seebri, Relvar and the product developed together with Intas.

Furthermore, Iconovo sets a goal of achieving an operating profit of 100 million SEK and thus an operating margin of 50 per cent.

Potential upsides

A potential upside in the sales target is royalty revenue from the area of innovative inhalation products. According to Iconovo, these products are less likely to reach the market than generic products and they also take longer to develop. However, an innovative project that Iconovo believes may reach launch within five years is the development of an inhaled Covid-19 vaccine together with ISR. If the project is successful, it could increase revenue by up to 100 million SEK in 2026.

Furthermore, a potential upside is royalty revenue from sales through Amneal in the US. Amneal’s decision tolaunch a generic Symbicort in the US will be based on a number of future events in the US and Europe. As aresult, Iconovo chooses to see it as a potential upside of 70 million SEK in 2026.

1/3 of the turnover from Iconovo Pharma

Last week, Iconovo announced that they are starting a new pharmaceutical division called Iconovo Pharma for the Nordic market. This was decided when Iconovo acquired the rights from Amneal to sell a generic Symbicort in the Nordic region.

The majority of the launched products will be sold in the Nordic region by Iconovo Pharma. According to the recently communicated business targets, sales through Iconovo Pharma are expected to account for one third of sales in 2026. The company estimates that the remaining two thirds will come from royalty revenues for generic inhalation products.

Virtual Capital Markets Day Wednesday, May 26

The financial targets for the next five years will most likely be mentioned at Iconovo’s Virtual Capital Markets Day on May 26 at 13:00-15:30. During the day, the audience will hear presentations from members of the management team as well as external guest speakers, such as the company’s customers ISR and Monash University regarding the projects for inhaled Covid-19 vaccine and inhaled oxytocin.

The digital event will focus on Iconovo’s transformation into a commercial pharmaceutical company as well as the potential in the company’s three strategic areas – generic inhalation products, innovative inhalation products and its own sales of generic inhalation products through Iconovo Pharma. According to the business goals, Iconovo will try to find a good mix of customer agreements in all three strategic areas in order to achieve a diversified product portfolio with both opportunities and risks.

High expectations for the next five years

Iconovo seems to have high expectations for the company’s growth over the next five years, given the recently communicated ambitious business goals. In five years, Iconovo is expected to have 50 employees, a doubling compared to today. According to Johan Wäborg, CEO, Iconovo is a company with high ambitions that is getting closer and closer to launch:

»Iconovo is a company with high ambitions. Now that we have increased the number of innovative projects in our pipeline in a short period of time and are getting closer and closer to launch, we think it is important to communicate financial goals« – Johan Wäborg, CEO Iconovo 

The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.