Dimerix (ASX:DXB) just closed a 2nd licensing deal

Marc Kennis Marc Kennis, May 30, 2024

Dimerix did it again

ASX-listed kidney disease drug developer Dimerix (ASX: DXB) is well positioned to bring its DMX-200 drug to market for Focal Segmental Glomerulosclerosis (FSGS). The drug is in a Phase 3 trial, which has shown solid interim results. The company secured its inaugural license deal in October 2023 with Advanz Pharma, and just secured a second deal with Taiba Middle East.

 

Another licensing deal

Taiba has gained exclusive rights to register and commercialise DMX-200 for the treatment of FSGS in 7 Middle Eastern markets: The United Arab Emirates (UAE), Saudi Arabia, Oman, Kuwait, Qatar, Bahrain and Iraq. Dimerix will receive up to ~A$120.5m in upfront and milestone payments in addition to tiered royalties, starting at 30% on net sales. The deal will also provide for Taiba to be responsible for submission and maintenance of the regulatory dossier in all of these territories, as well as all sales and costs of marketing activities.

Collectively, these markets have a population of over 100m, and healthcare is free and government-sponsored. Companies can set the prices of
orphan drugs according to either their price in the country of origin or in the US or Europe.

 

Strong prospects ahead

DXB shareholders have much to look forward to in the months ahead. The company is in the middle of a Phase 3 trial that has released favourable interim data – few other ASX biotechs can boast of being in Phase 3. And there is potential for further licensing deals – in particular, the lucrative US and China markets.

The next set of data from the trial is due in mid-CY25, and there is potential for DXB to apply for regulatory approval in the US thereafter. We see these as the key catalysts for the creation of shareholder value in the nearterm, although the adding of the Middle East to the company’s market will help the company when it gets to the point of commercialisation.

 

Updated valuation range of A$0.84-1.07 per share (was A$0.64-0.84)

We previously valued of Dimerix at A$0.64 per share in a base case scenario and A$0.84 per share in an optimistic case scenario. We update this to A$0.84 and A$1.07 per share accounting for the market opportunity and utilising our independent assumptions on the market size and predictions of the company’s market penetration.

 

Disclosure: The report that Pitt Street Research published on Dimerix is an issuer-sponsored report.

 

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