Saniona is developing products internally with the aim of attaining market approval itself in the U.S. and Europe for certain orphan indications where the required investments are limited, and the commercial opportunities appear to be very large. Saniona is currently developing Tesomet for Prader Willi syndrome and hypothalamic obesity in the U.S. and Europe. Patients with these rare eating disorders suffer from extreme hyperphagia which can lead to severe obesity. There is a major medical need for a product, which can provide weight loss and reduce hyperphagia in these patients. The market for such a product may be significant and have blockbuster potential despite a relative low number of patients. Furthermore, the required investments for developing Tesomet in these in indications are comparatively small and the required commercial infrastructure for servicing these patients in the U.S. and Europe is manageable.
In addition to this, Saniona is developing products internally or in collaboration with pharmaceutical companies. The structure of Saniona’s collaboration agreements depend on the product, the indication, the investment and the risk as well as the interest and capabilities of Saniona’s partners. In general, Saniona grants its partners commercial license to a limited territory or on world-wide basis, when it decides to develop a product in collaboration with pharmaceutical company. In exchange Saniona’s partners typically finance future research and development activities and pay Saniona upfront payments, research funding, milestone payments and royalties on product sales when the product candidates are commercialized.