Liposomal Technology and the BioMed Revolution in Drug Delivery Solutions
Can you say liposomal delivery platform technology five times fast? If not, or if this jumbled biotech jargon sounds like Greek to you, then tune in. Today we’re talking about liposomes, drug delivery technology, and the exciting push for innovation in this space from a range of dynamic biotech and pharma players.
First off, what exactly are liposomes and liposomal delivery technology? According to a 2018 review article published in the journal Frontiers in Immunology:
“Liposomes are closed bilayer structures…that are widely used as efficient delivery systems for drugs or antigens…The efficacy of liposomes as drug or antigen carriers has been improved in the last years….to release their cargo in selected target organs or cells.”
In layman’s terms, liposomes are spherical vesicles that have been found to be a highly effective delivery method for the intake of therapeutic drugs into the human body.
Over the past decade, both established biotech giants as well as some emerging start-ups have catalyzed R&D in this field in order to generate qualitative improvements in liposomal technology that enables targeted delivery of a drug to a specific organ or type of cell tissue. In addition to targeted delivery capabilities, recent improvements in liposome tech have introduced stimuli responsive (pH or temperature) liposomes (which release the encapsulated drug following exposure to acid pH or heating), as well as those that allow for the extended release of a drug far exceeding the timeline permitted by conventional delivery methods.
The valuation of the global liposomal technology market is immense. As detailed in a December 2021 market report released by Insight Partners:
“[T]he global liposome drug delivery market is expected to reach US$ 6,992.95 million by 2027 from US$ 3,594.41 million in 2019. The market is estimated to grow at a CAGR of 8.8% from 2020 to 2027.”
The report notes that the advent of the COVID economy since 2020 and the redirection of resources to accelerating innovation in the broader biomedical/pharmaceutical sector has exerted a positive impact on the liposomal technology market. Furthermore, the report notes that a growing consensus is emerging about the tremendous therapeutic potential offered by this technology: “regulatory bodies in the US and Canada, the US FDA and Health Canada respectively are also encouraging the use of these solutions in healthcare systems as promising anti-fungal and anti-cancer treatments thereby boosting the demands of these products.”
As described in the excerpt above from Insight Partners, some of the concrete applications of liposomal technology is for antifungal, anti-cancer, and anti-HIV treatments. One clear leader in the field that addresses these categories is Gilead Science (NASDAQ: GILD). With a market cap of $90B, GILD has exceeded earning expectations for the past three out of four quarters. Despite a recent downgrade from overweight to equal weight by Morgan Stanley, the analyst consensus for GILD as BUY/HOLD. As of market close on January 12th, GILD was trading at $72.25, with an average target price of $77.08. In other words, Gilead is an established midcap player that represents both a safe investment opportunity and also a major disruptor in the liposomal tech space.
Gilead’s flagship liposomal product is AmBisome (amphotericin B), whose two primary applications are for antifungal and anti-HIV drug delivery. Back in May ’21, AmBisome entered the arena of global health diplomacy as India faced a double crisis of COVID cases and an outbreak of black fungus-related illness. PM Narendra Modi ordered the procurement of 1 million doses of AmBisome to address the black fungus outbreak, and Gilead joined the effort to supply the critical supplies to the Indian government. The shortage sparked public outcry across India, with angry rhetoric directed both towards the Ministry of Health as well as suppliers who were accused of hoarding supplies and price-gouging. The take-away from this episode is that liposomal delivery tech is increasingly being seen as critical healthcare supplies, generating waves at the highest levels of office in the world’s largest democracy.
Another energetic area of liposomal tech R&D is in exploring its applications for anti-inflammatory and pain management solutions. A study published in the April 2018 edition of the Journal of Biomaterials found a positive correlation between liposomes, extended drug release, and recovery time. In its own words, “liposomes, in particular upon shell modification with phosphatidylserine, promote dexamethasone delivery to macrophages and induce a phenotype suitable to support chronic wound healing.”
Latching onto this particular application is Innocan Pharma (CSE: INNO), a Canadian-Israeli small-cap that is carving out a niche for itself in the field of CBD (cannabidiols) therapeutics. In collaboration with the Hebrew University of Jerusalem, Innocan is pursuing research on liposome platform technology (LPT) as a mechanism for the extended release of CBD within the bloodstream to promote anti-inflammation. The anti-inflammatory properties of CBD has already been determined in a raft of recent literature; Innocan’s value proposition is in using its LPT (liposome platform technology) for ultra-slow release of CBD into the bloodstream for a target-area for a period of up to 50 days in order to maximize the anti-inflammatory impact. In September 2021, Innocan announced that it had observed a similar pharmacokinetic profile in large animals treated with the liposome-delivered CBD to what was seen in small animals, thus constituting an encouraging indication for the future viability of human trials.
Beyond GILD and INNO, a number of established and rookie biotech/pharma players have joined the effort to push the frontiers of liposome delivery technology. For the the more risk-averse biotech investors out there interested in establishing positions in the liposome space, I recommend to start with screening for companies like Novartis (NYSE: NVS), Pacira BioScience (NASDAQ: PCRX), and Johnson&Johnson (NYSE: JNJ). For the more speculatively minded crowd, plays like Innocan offer the chance for high reward albeit at high risk; lower entry prices for the small-cap innovators out there may also take the edge off establishing an initial, experimental position due to a relatively lower initial investment of capital. Take a look, do some research, and now you’ve got a whole new list of fancy biotech buzzwords to pull out at that next cocktail party (once Omicron passes).
Disclaimer: the contents of this blog post should in no way be construed as investment of financial advice, and rather represent the personal opinions of the author.
Sources:
https://www.frontiersin.org/articles/10.3389/fimmu.2018.00155/full
https://www.globenewswire.com/news-release/2021/12/16/2353692/0/en/Liposome-Drug-Delivery-Market-Size-Worth-6-992-95-Million-Globally-by-2027-at-8-8-CAGR-Exclusive-Report-by-The-Insight-Partners.html
https://oak.novartis.com/35220/
https://www.gilead.com/~/media/Files/pdfs/medicines/other/ambisome/ambisome_pi.pdf
https://www.ft.com/content/ced27e46-f3b1-465a-8ecc-5346d608a77f
https://finance.yahoo.com/news/innocan-pharma-expand-lpt-platform-080000574.html
https://ars.els-cdn.com/content/image/1-s2.0-S0169409X20300685-ga1_lrg.jpg
https://www.futurewiseresearch.com/Upload/4507Liposome%20Drug%20Delivery%20Market.png
https://www.newsfilecorp.com/release/100173/Innocan-Reports-of-Presence-of-CBD-in-Mices-Brains-41-Days-After-Injection-of-CBD-Using-Innocans-Liposome-Platform-Technology
