Our mission is to discover and develop efficacious new drugs in order to test them in clinical trials. We have a strong position in generation of new molecules with unique technology, that enables us to navigate the value chain of human pharmaceuticals with clear differentiation from the industry mainstream. This strategy is compatible with the current business models in the biopharmaceutical market.
Our core activities are the generation of New Molecules, analogs of bioactive compounds, the supply of these for biological in vitro and in vivo testing and the development of an optimized process for the production of the candidate drugs.
We also study pharmacological aspects, including mechanism of action, pharmacokinetics and pharmacodynamics both internally and with the help of a top-quality collaborator network. We also perform in vivo toxicity and efficacy testing in rodents, taking advantage of our access to the local SPF vivarium.
Our activities are focused in the preclinical portion of the Value Chain, close to the initiation of Clinical Trials, the entry point being discovery of new molecules obtained by licensing-in agreements with the University of our co-founders and more recently by our own internal R&D efforts.
The Value Chain of New Drugs for Human Health is a time and money-consuming endeavor that typically lasts over 10 years, and it is full of uncertainties, so success is contingent to meet, among others, many technical milestones along the way to commercialization. This complexity provides opportunities for innovators willing to exploit specific technology advantages.
EntreChem is an example of company developing drugs and their supply-enabling technology, in a promising category that bigger companies abandoned since advances in the field were mostly left to academic groups and their spin offs.
EntreChem Business Model consists of developing viable compounds through the value chain in order to reach significant technical milestones to the point of licensing-out to a company positioned downstream in the value chain that would take the product through late clinical trials and commercialization. Our corporate strategy is to develop the product until Phase II and then license out.
This business model is supported by the market dynamics, which in the pharmaceutical industry is based on the “Licensing out Licensing In” model, reflecting the highly complex value chain, which very few companies can afford to navigate in its entirety.
In the last 10 years, the contribution of licensed-in products (discovered and partially developed by others) to total sales in the World Drug Discovery Industry has risen from less than 20% to over 40%.
SOURCE: Frost and Sullivan
The average up-front payments of the drugs depend largely on the development stage of the drug at the moment of licensing. The most advanced the drug candidate, the higher the upfront payment.
SOURCE: Elsevier’s Strategic Transactions