Bryan Morton tells us why EUSA is one of the best transatlantic commercial specialty pharmaceutical companies, specialised in oncology and critical care medicine




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Video title: Bryan Morton tells us why EUSA is one of the best transatlantic commercial specialty pharmaceutical companies, specialised in oncology and critical care medicine
Released on: June 01, 2011. © PharmaTelevision Ltd
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In this episode of PharmaTelevision News Review, Fintan Walton talks to Bryan Morton, CEO of EUSA Pharma
EUSA's growth as a transatlantic commercial speciality pharma company
Fintan Walton:
Hello and welcome to PharmaTelevision News Review here at BioTrinity 2011 in the UK. On this show I have Bryan Morton, who is President and CEO of a company called EUSA based here in the UK, welcome to the show.
Bryan Morton:
Thank you Fintan, nice to be with you today.
Fintan Walton:
Bryan, how would you describe EUSA?
Bryan Morton:
EUSA , is one of the best transatlantic commercial specialty pharmaceutical companies, it's specialized in oncology and critical care medicine.
Fintan Walton:
You've got products, you've got products that are on the market how did you get those products?
Bryan Morton:
We've acquired to create EUSA , we started acquiring first orphan pharmaceuticals international a French private company [PharmaDeals ID = 26657] that gave us a network in many countries they had products that were either on the market or coming. We then acquired Cytogen [PharmaDeals ID = 30390] a public US company which gave as our infrastructure in the US and we've done two other deals to bring in products to flush through that infrastructure allowing us to become one of the probably the best profitable pharmaceutical specialty companies based in the transatlantic space at the moment.
Fintan Walton:
Right, so obviously you are a private company you've got a number of venture capital private equity backers of your company, so the company was in a sense set up purely to go out there and buy up products that be a correct assumption?
Bryan Morton:
Absolutely, and this was based on the experience of the former company I founded Zeneus Pharma, you might remember Fintan we sold out to Cephalon [PharmaDeals ID = 22786] after just 22 months made a 3X for the investors of the day this was just Pan European and company and I thought at the time if I can find the right backers we can create a transatlantic company, which was my dream anyway and the lead investor was Essex Woodlands they today have 40% of the company and we have excellent investors alongside them and we all agree on the mission which is to create a fabulous transatlantic specialty company.
EUSA's types of speciality components
Fintan Walton:
And so when you do that, when you've gone through that experience you obviously are looking for products how important is it, you've mentioned the specialty part of it how important is the specialty component, because specialty obviously reflects a defined therapeutics space that you want to be in, but that's by defining that therapeutic space you're also restricting yourselves, so how do you get the overcome the tension between trying to build a company with products, but at the same time remaining specialty?
Bryan Morton:
Yes, it is tough I mean we had three types of specialty one is we concentrate on the US and European markets that's a specialty in itself particularly with (indiscernable) where reimbursement works. Secondly we specialize in oncology and critical care these are therapeutic areas we know a lot about there are also a lot of products available if you look at the development of products in those fields there is going to be a lot for license well into the future, but the third specialty that we have is to be commercial and we concentrate only on the hospital sector of the market, we are not primary care, we don't cover family doctors and that can base two advantages small sales forces and people there really specialized in the high science, so it's a very small company but with very dedicated highly skilled people.
Competetion with bigger pharma companies
Fintan Walton:
Right, so you've successfully have acquired these range of different products and of course if somebody's wants to see those products they are on your website, but obviously importantly is that there is the world is changing, there are other companies competing in your space and even the larger pharmaceutical companies are moving into your space, so how do you compete in that changing market?
Bryan Morton:
Well it's an interesting move by people like Glaxo and Pfizer announcing their orphan disease or rare disease groups they of course compete for products however there is such a lot of room for maneuver beside the general pharmaceutical industry anyway there are lot of people doing a lot of great work and so we think there is enough room for everybody, but I do think that our model is very different than that which Glaxo reports to be following and that Pfizer may well follow.
Fintan Walton:
And can you make decisions presumably you can make decisions much faster than a large pharma company can, they have got larger review bodies much more process driven well presumably you can make decisions quite quickly on an acquisition?
Bryan Morton:
Absolutely, I think our first acquisition we did in a total of eight weeks we have a very efficient board, we have money and so decision making can be very quick for the right deal on the contrary I've worked with big pharma in the last 18 months and suffered greatly as many do with committees, and reviews, and additional reviews and diligence that includes so many factors different players, different analysis, reanalysis we don't need to do that in our specialty models, so we are very fast, first effort and we generally close deals that we compete well on.
EUSA : A clinical development company with sales and marketing capability
Fintan Walton:
So would you describe your company, you've described as a specialty company, you've described it as a profitable company, but effectively you are a sales and marketing company will that be a fair statement?
Bryan Morton:
It is generally what we like to be known as a commercial company Fintan you are absolutely right, but actually we do a lot more than just commercialization. For our type of business where you are in the hospital with specialist products you need outstanding registration mark, we have both FDA and EMEA experience and a very good team to do that, we have also reimbursement skills, we get the prices, we get the drug on the market and listed, and we work with the (indiscernable) and so we don't just do sales and marketing and indeed we have a small pipeline of drugs which we develop ourselves and these are in Phase II or III, but we don't do basic research.
Fintan Walton:
Okay, so you are a clinical development company with the sales and marketing capability?
Bryan Morton:
Exactly and we are not again searching for the development opportunities either.
Exit opportunities :IPO market vs Trade sale
Fintan Walton:
Right, now the other thing as you said you've mentioned that your previous company only existed for something like 22 months and it got quickly acquired, I mean clearly we are in a changing environment within the pharmaceutical industry which was described already how the other companies are coming into this particular space, we also know that for your investors to exit the usual two exit scenarios are one is IPO and we are all looking for an IPO market, I suppose your company is in a better position to IPO because you've actually got cash flow coming through your door, but equally as these companies move into to get into the space you must be a primary takeover target, would that be correct?
Bryan Morton:
I think people wouldn't people believe that private equity banks you are always for sale. I think there are two differences between this company EUSA and the last one Zeneus, Zeneus was backed by one investor in a fund that was mid way through the life of the fund and exit was going to benefit their return investments stats, but also we had an attractive buyer that came early and saw the value of it, but EUSA we designed really with a group of investors, early stage funds and the idea was to build overtime and then look at the opportunities to exit, and I think there are two exits for us there is an IPO or there is a trade sale.
Fintan Walton:
Which one is most likely?
Bryan Morton:
I think the IPO market at the moment is closed, there doesn't appear to be an opening coming although if it did I am sure we would go. The opportunity for trade sale is very readily there of course we have a reputation of building good companies and we've had a lot of interests in the last year.
Plans for further acquisitions
Fintan Walton:
Bryan, you've mentioned and your company has mentioned an ambition to build a company that's worth about $2 billion, I suppose part of my question is really around are you in the game for doing more acquisitions yourselves?
Bryan Morton:
We certainly are, I mean 2 billion of value is great goal to have, we clearly can't spend 2 billion getting there, but we have spent now $275 million building what we have, we have further funds in reserve to be able to complete other acquisitions. I think that 2 billion value looks like a company with 400 of sales that is profitable and we are well on our way now to that, but we continue to look every day for further acquisitions of products or companies.
Fintan Walton:
Bryan Morton, thank you very much indeed for coming on the show.
Bryan Morton:
Great pleasure Fintan, thanks for having me.
Fintan Walton
Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).
Bryan Morton
CEO
Bryan Morton currently serves as CEO of EUSA Pharma. Bryan Morton has a BSc in Pharmacology from Aberdeen University and an MBA from Durham University. He began his pharmaceutical career in sales and has held positions of increasing responsibility in medical information, marketing, sales management, business development and general management during a 30 year career in the healthcare industry, largely with Merck and Co. Inc. and Bristol Myers Squibb. During this time he has lived and worked in the UK, USA, Australia and Belgium and in 2003 he founded Zeneus Pharma through the acquisition of Elan's European sales and marketing business for $120m in a private equity deal. Following the sale of Zeneus Pharma for $360m in late 2005, Bryan founded EUSA Pharma in 2006 with backing from comprising Essex Woodlands.
PharmaVentures
PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.
EUSA Pharma
EUSA Pharma is a rapidly growing transatlantic specialty pharmaceutical company focused on in-licensing, developing and marketing late-stage oncology , oncology supportive care and critical care products. The company currently has nine products on the market, including Erwinase and Kidrolase for treatment of acute lymphoblastic leukemia , Caphosol for the treatment of oral mucositis , a common and debilitating side-effect of radiation therapy and high-dose chemotherapy, the antibiotic surgical implant Collatamp, ProstaScint for imaging the extent and spread of prostate cancer , and Quadramet for the treatment of pain in patients whose cancer has spread to the bones. EUSA Pharma also has several products in late-stage development, notably Leukotac, a monoclonal antibody in phase III development for treatment of steroid resistant acute Graft versus Host Disease (aGvHD). Founded in 2006, EUSA Pharma is supported by a consortium of leading life science capital investors, comprising Essex Woodlands, 3i, Advent Venture Partners, SV Life Sciences, TVM Capital, NeoMed and NovaQuest. Since its foundation, the company has raised over $275 million, and completed several significant transactions, including the acquisitions of Cytogen Corporation, Talisker Pharma Ltd, the French biopharmaceutical company OPi SA and the European antibiotic and oncology supportive care business of Innocoll Pharmaceuticals Inc. As part of its rapid growth strategy the company has established commercial infrastructure in the US, a pan-European presence covering over 20 countries and a wider distribution network in a further 25 territories. EUSA Pharma plans to continue its aggressive program of acquisitions and in-licensing within its specialist areas of medical and geographic focus, in line with its ambitious target to create a rapidly growing $2 billion company by the middle of this decade.