Market Dynamics and Financial Trajectory for SORILUX
Introduction to SORILUX
SORILUX, a foam formulation of calcipotriene, is a synthetic vitamin D analog approved by the U.S. Food and Drug Administration (FDA) for the treatment of plaque psoriasis of the scalp and body in patients aged 12 years and older. This approval marked a significant milestone for Mayne Pharma, the company behind SORILUX[1][4].
Market Context: Psoriasis Treatment
Psoriasis is a chronic immune system disease affecting approximately 7.5 million Americans each year, with plaque psoriasis being the most common form, affecting about 80% of those with the condition. The global psoriasis market is projected to grow significantly, reaching around $21 billion by 2022, driven by increasing diagnoses and the development of new treatments[1].
Approval and Launch
SORILUX was initially approved by the FDA in 2010 for adult patients and later received approval for adolescent use in May 2019. The approval for adolescents was based on evidence from clinical trials and a follow-on open-label study in patients aged 12 to 17 years[1][4].
Market Reception and Sales Performance
Since its approval, SORILUX has seen strong sales growth. In the 2019 financial year, SORILUX sales increased by 26% compared to the previous year, contributing significantly to the growth of Mayne Pharma's Specialty Brands Division. This division reported a 105% increase in sales and a 113% increase in gross profit, largely due to the performance of SORILUX, LEXETTE, and the DORYX family of products[3].
Competitive Landscape
The psoriasis treatment market is highly competitive, with multiple companies developing or marketing psoriasis medications. Mayne Pharma's products, including SORILUX and LEXETTE, compete with offerings from companies like Dermavant, Regeneron, Sanofi, AbbVie, Johnson & Johnson, and Novartis. The topical corticosteroid market for psoriasis in the U.S., where SORILUX operates, was valued at around $600 million when LEXETTE was launched[1].
Product Differentiation and Market Position
SORILUX stands out due to its foam delivery platform, which is preferred by dermatologists for its ease of application, lack of greasiness, and stickiness, especially in hair-bearing areas and under clothing. This formulation makes it a more user-friendly option compared to traditional topical treatments[1][4].
Financial Impact on Mayne Pharma
The approval and successful launch of SORILUX have positively impacted Mayne Pharma's financial performance. In the 2019 financial year, the company reported revenue of $525 million, with the Specialty Brands Division, which includes SORILUX, contributing significantly to this figure. Despite overall revenue being down 1% compared to the previous year, the gross profit for the Specialty Brands Division increased by 113%[3].
Challenges and Future Outlook
Mayne Pharma faced challenges in the 2020 financial year due to the COVID-19 pandemic, which led to a decline in prescribing driven by physician office closures and reduced patient visits. This resulted in a 14% decline in sales for the Specialty Brands Division, which includes SORILUX. However, the company has been optimizing its cost base and restructuring its dermatology sales team to mitigate these impacts[5].
Strategic Investments and Growth Trajectory
Mayne Pharma is actively repositioning its business towards more protectable revenue streams, focusing on dermatology, women’s health, and infectious diseases. The company has made significant strategic investments, including the licensing of a novel oral contraceptive product and the development of rare skin disease treatments. These moves are expected to transform the company's business and growth trajectory over the coming years[3].
Key Metrics and Performance
- Sales Growth: SORILUX sales increased by 26% in the 2019 financial year.
- Revenue Contribution: The Specialty Brands Division, which includes SORILUX, reported a 105% increase in sales and a 113% increase in gross profit in 2019.
- Market Value: The topical corticosteroid market for psoriasis in the U.S. was valued at around $600 million.
- COVID-19 Impact: Sales declined by 14% in the 2020 financial year due to pandemic-related challenges[3][5].
Expert Insights
According to Mayne Pharma's CEO, Scott Richards, "SORILUX is an elegant foam formulation that is marketed by Mayne Pharma’s Specialty Brands sales team alongside recently launched LEXETTE™ (halobetasol propionate) Foam, a potent topical corticosteroid also used to treat plaque psoriasis in adult patients."[1][4]
Illustrative Statistics
- Global Psoriasis Market: Expected to be worth about $21 billion by 2022[1].
- Psoriasis Prevalence: Affects approximately 7.5 million Americans each year[1].
- Topical Corticosteroid Market: Valued at around $600 million in the U.S.[1].
Conclusion
SORILUX has established itself as a significant player in the psoriasis treatment market, particularly with its approval for adolescent use. Despite facing challenges such as increased competition and the impact of the COVID-19 pandemic, Mayne Pharma's strategic investments and focus on protectable revenue streams position SORILUX for continued growth and market dominance.
Key Takeaways
- SORILUX is approved for treating plaque psoriasis in patients aged 12 years and older.
- The product has seen strong sales growth since its approval.
- The foam delivery platform of SORILUX is highly regarded by dermatologists.
- Mayne Pharma is repositioning its business to focus on more protectable revenue streams.
- The company has faced challenges due to the COVID-19 pandemic but is optimizing its cost base and restructuring its sales team.
Frequently Asked Questions (FAQs)
Q: What is SORILUX used for?
A: SORILUX is used for treating plaque psoriasis of the scalp and body in patients aged 12 years and older.
Q: When was SORILUX approved for adolescent use?
A: SORILUX was approved for adolescent use by the FDA in May 2019.
Q: What is the active ingredient in SORILUX?
A: The active ingredient in SORILUX is calcipotriene, a synthetic vitamin D analog.
Q: How does the foam delivery platform of SORILUX benefit patients?
A: The foam delivery platform of SORILUX is preferred for its ease of application, lack of greasiness, and stickiness, especially in hair-bearing areas and under clothing.
Q: How has the COVID-19 pandemic impacted SORILUX sales?
A: The COVID-19 pandemic led to a decline in prescribing due to physician office closures and reduced patient visits, resulting in a 14% decline in sales for the Specialty Brands Division, which includes SORILUX.
Cited Sources
- Biospace: Australia's Mayne Pharma Receives FDA Nod for Adolescent Plaque Psoriasis Treatment
- ASX Announcement: Annual Report 2019 - For personal use only
- ASX Announcement: ASX Announcement - For personal use only
- Biospace: FDA Approves SORILUX(R) for Adolescent Plaque Psoriasis
- ASX Announcement: 2020 Annual Report - For personal use only