- iX Biopharma has secured US$41mn funding from the US Department of Defense (DoD) to support the Phase 3 clinical development of its pain drug Wafermine. It validates iX Biopharma’s WaferiX technology platform and allows entry into the US$5-6bn acute pain drug market in the US.
- Prior to full FDA approval, iX Biopharma will seek approval for Wafermine to be supplied to the DoD under an Emergency Use Authorisation (EUA) for immediate battlefield deployment and operational military medical use. We expect initial orders of S$3mn in FY27e. The larger opportunity is Wafermine adoption into standard field kits and sales into the non-military commercial market following full US FDA approval.
- We re-initiate coverage on iX Biopharma with a BUY recommendation and a SOTP-derived target price of S$1.00.There are three pathways to monetise Wafermine: full commercialisation upon FDA approval (1Q29), out-licensing, or an outright sale of the drug. Until completion of Phase 3 trials, iX Bio will be enjoying three new sources of revenue through Wafermine EUA sales, DoD grant funding, and compound pharmacy in the US. We assign a 40% discount to the underlying net present value of Wafermine and value the compound pharmacy at 20x PE. We also discounted the remaining 30+ drugs, which are under various stages of development.
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