Crescita’s US Prescription Product is “Launching Shortly,” says CEO

Crescita Therapeutics’ (TSX:CTX) new US launch of Pliaglis–through its partner Taro Pharmaceuticals (NYSE:TARO)–is just one of the many global expansions the company is expecting in the coming years.

While at the Bloom Burton & Co Healthcare Investor Conference, which was held in Toronto from May 2-3, the Investing News Network (INN) had the chance to catch up with the company’s new president and CEO, Serge Verreault, to discuss Crescita’s growth through its pipeline and marketed products, licensing and acquisitions. To listen to the full interview, watch the video above.

“Our partner in the US licensing Pliaglis, our prescription product, will be launching shortly,” Verreault told INN. “The US market could bring up to $5.25 million in the US sales milestone [payments],” in addition to tiered royalties on net sales.

In March, Crescita announced the first shipments of Pliaglis had been received by Taro and would be launched. As noted by Verreault and per the licensing agreement, Taro will sell and distribute Pliaglis in the US market, which was announced in April 2017.

Pliaglis is a US Food and Drug Administration (FDA) topical anesthetic cream providing local analgesia for superficial dermatological procedures, such as dermal filler injection, pulsed dye laser therapy, facial laser resurfacing and laser-assisted tattoo removal. With Crescita’s patented “peel” technology, the product is applied, dries as a pliable layer and releases the drug into the skin, allowing the procedures performed with minimal to no pain.

This is the company’s first prescription product, “bringing anesthetic effect to any type of topical procedure,” Verreault said. Crescita owns the development rights in Canada and Mexico, but is also looking for a licensing partner in Mexico.

In addition to the company’s marketed products, Verreault said Crescita intends to grow organically through “business development pillars,” which includes expanding three non prescription brand skincare products globally, especially to the US and Asia. The brands include: Laboratoire Dr Renaud, Pro-Derm, and Alyria.

Verreault explained the company intends to expand the products through licensing, with the best partners in its respective countries.

“We don’t want to establish an office in the US to launch,” Verreault told INN. “We need to be conscious of the cost of entry.”

Crescita is the product of Nuvo Pharmaceuticals’ (TSX:NRI) reorganization into two companies in March 2016. “After that we set up the stage to become a commercial company,” Verreault said. Since then, Crescita has completed two acquisitions: INTEGA Skin Sciences and Alyria Skincare Products.

More acquisitions are also on the company’s radar for business development, such as a “strategic acquisition that could be in Canada,” Verrault said.

Investor Takeaway

In the past two years, Crescita used a lot of cash for the company’s reorganization and alignment of operation, such as transfering all operation to its Montreal office. The company is also able to manufacture products in-house and is expanding partnerships into production, such as producing products for other companies to gain more revenue.

What this means for interested investors interested in Crescita is that they can look forward to news growth through its pipeline and marketed products, licensing, acquisitions and production capabilities. As Verreault said, the biggest event will be Taro launching Pliaglis.

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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.