Compass Biotechnologies, Inc. (Compass) (formerly Cyplasin Biomedical Ltd) is newly focused on the development and commercialization of generic, biosimiliar and bio-better products. Generic drugs are chemical copies of existing drugs and biosimiliars are protein based drugs that do a similar job to the original protein based product. Bio-Better products are new versions of patent-expired biologically based drugs that do the job smarter, more economically, or with a better side-effect profile. A "bio-better" is a biopharmaceutical product that is a copy of an existing product but is designed to have superior efficacy, safety, or improved drug delivery characteristics compared to the original product.
As part of this new strategy and focus Compass is pleased to announce the signing of a Memorandum of Understanding (MOU) with PanGen Biotech Inc., (PanGen) of South Korea. The terms of the MOU lay down the foundation for a definitive agreement to be signed within the next 60 days between the Parties, whereby PanGen will manufacture under cGMP conditions, major active pharmaceutical ingredients (API's) which will be used to produce the bio better versions of various drug products. As PanGen's expertise lies with production of proteins and antibodies, Compass will be supplied with API's to produce Bio-Better drugs which may encompass such block buster products as EPO, G-CSF, beta-IFN, alpha interferon and Factor VIII products. The terms of the MOU give Compass rights to North, Central and South America as well as the EU countries and other geographical areas.
Worldwide, biological based drugs generate more than US$120 billion in revenue. From monoclonal antibody therapies and cytokine growth factors to vaccines and blood factors, biopharmaceuticals have a healthy and expanding bottom-line. As more and more of the first-generation biological such as recombinant human versions of insulin, growth hormone, erythropoietin (EPO) become patent-expired, they are thrown into competition with "biosimilars" - generic versions of the biotech drug. The impact on the industry is undeniable: The rising cost of existing and expensive biopharmaceuticals contrasted with needed lower market price points have created the need for increasing availability of generic and biosimilars.
However Garth Likes CEO of Compass says" while our strategy is to look at generic and biosimiliar opportunities; we do not wish to be strictly a generic drug me too company. What we have done with the signing of this MOU with PanGen is to secure the supply of cGMP produced protein APIs which will allow us to add our own value, so as to create Bio-Better products and which where possible will also have their own patent protection.
Joseph Sinkule Director of Compass agrees and states "the first-generation biologicals are all immediate-release and are eliminated rapidly from the blood. They are usually injected by syringe either subcutaneously or via an intravenous infusion. Bio-Betters make existing biologic drugs even better by for example formulating the protein with patented polyethylene glycol (PEG) or other carriers to make the new biological drug more efficacious, or remaining in the blood longer allowing for less frequent dosing, and most critically potentially reducing the risk of immunogenicity (side effects and allergic reactions) to the protein. We have multiple strategies in play which will allow us to announce future products which will lead to nearer term revenue generation for the Company." Mr. Likes confirmed the signing of this MOU opens the door for many multiple millions in revenues for the Company and expects to announce the signing of the definitive agreement shortly.
