Adapt Pharma prof­its hit €16m as over­dose drug boosts sales

Irish Independent - Business Week - - FRONT PAGE - Gor­don Dee­gan

DUBLIN-BASED Adapt Pharma recorded pre-tax prof­its of $19m (€16.46m) last year af­ter rev­enues more than tripled.

In Au­gust, those fig­ures helped per­suade US group Emer­gent Bioso­lu­tions to part with $635m for the pharma firm, which cre­ated a mas­sive pay­day for that amount for six Ir­ish busi­ness­men, in­clud­ing Adapt chair­man and CEO Sea­mus Mul­li­gan.

Mr Mul­li­gan – a Water­ford en­tre­pre­neur and pharma in­dus­try vet­eran – and his team in­vested €114m to set up Adapt Pharma. Mr Mul­li­gan stands to gain $550m from the $735m deal that in­cludes $100m be­ing paid over pro­vided that cer­tain mile­stones are reached.

The soar­ing rev­enues at the com­pany are based on its over­dose res­cue drug, Nar­can nasal spray, which is be­ing used to tackle the opi­oid cri­sis in the US.

In 2014, the firm ac­quired the world­wide de­vel­op­ment and com­mer­cial­i­sa­tion rights for Naza­lone.

The prod­uct was com­mer­cially launched in the US in 2016 and ear­lier this year, the drug came un­der the spot­light af­ter it re­port­edly saved the life of singer Demi Lo­vato af­ter an over­dose at her Hol­ly­wood home.

Now, new fig­ures show that Adapt Pharma Ltd last year recorded a pre- tax profit of $19m – com­pared to a loss of $7.5m in 2016 – a pos­i­tive swing of $26.5m.

This was largely as a re­sult of rev­enues in­creas­ing more than three­fold go­ing from $24.8m to $84.4m.

As a re­sult of the suc­cess­ful year, the di­rec­tors handed them­selves a bumper pay in­crease go­ing from $1.089m to $1.48m – made up of emol­u­ments of $1.139m and pen­sion pay­ments of $345,000.

Num­bers em­ployed last year in­creased from 49 to 62 with staff costs of $12.47m. US fire­fight­ers tend to a man who had over­dosed on heroin in New Eng­land in the US. He was re­vived with two doses of Nar­can – the drug has boosted rev­enues at Adapt Pharma This in­cludes salaries of $10m; share­based pay­ments of $424,000 and other ben­e­fits of $529,000.

Ac­cord­ing to the di­rec­tors’ re­port, in 2017 and in 2018 to date, the group has con­tin­ued to broaden the dis­tri­bu­tion of Nar­can Nasal Spray in the US and in Canada by in­creas­ing aware­ness and ac­cess and through strong gov­ern­men­tal, in­sti­tu­tional and com­mer­cial part­ner sup­port.

In March, the group an­nounced ex­pan­sion of its tech­ni­cal and de­vel­op­ment teams to fur­ther ad­vance the com­pany’s opi­oid use disor­der fo­cused R&D pipe­line.

Life-sav­ing:

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