A change of state

Hi everyone

It has been a while since I have provided my views on the current state of SUDA so after yesterday’s announcement I thought it was about time.

In the last 3 weeks we have seen the following events

The lodging of the new technology patent which ensures IP protection (when granted) for the new formulation
The signing of a licensing deal in China
The presentation released yesterday providing some insight into the new technology as well as some data on the new formulation of the Viagra spray.

These 3 events to me represent a CHANGE OF STATE for the company.

Yes it has taken a long time but that first deal signed is a watershed moment for the company and proves that the management team can get deals done and proves that outside parties see enough value in the technology to throw some money behind it. I have little doubt that this licensing deal is the first of many.

Now onto yesterdays presentation where 2 things caught my eye

The first relates to the greater permeability that has been observed in the *word disallowed by google studies. See the chart below.

The way that I see things is that greater permeability means that more of the active ingredient permeates the mucosa and enters the blood stream.
With more of the active ingredient hitting the bloodstream via the oro mucosal route, which we know is 2^nd only to injection in terms of speed, this would naturally IMO lead to a faster onset of action.
While these trials were all about permeability, I think the inference to faster onset of action is able to be made.




And the kicker – this chart shows the addition of menthol. Now if im not mistaken one of the criticisms in the past has been masking the unpleasant taste – this was at least the case for SUD-001 and im not sure about SUD-003. But the addition of menthol appears to me (a layman) to increase the permeability as well as provide a more pleasant taste!

My working assumption is that yesterday was the first time the world has seen this data. And when I say the world I mean shareholders, scientists, attendees in China, and Pfizer.

If I were Pfizer I would be taking serious notice of these results and I would be sitting very uneasily…
Why? Well SUDA have just done a deal in China which means they have achieved a lot of those relationship requirements that are needed to do business in China. This presentation was delivered in China.
I think the significance of these results will not be lost on anyone in the room and I think a US vs China bidding war for SUD-003 is a realistic possibility in the months ahead.

A watershed moment IMO

And the second part of my reading of the presentation relates to the technology platform itself.

I am no expert in this field (I work in the investment industry) but I couldn’t help but notice what could be a complete revolution in drug delivery via the oral mucosa.
If you look at the presentation it seems to imply that most of the drugs delivered via the oro-mucosa is done via the intercellular route where the drug passes around the cells to reach the bloodstream.

This new format with the addition of hyrdotropes means that SUDA’s products are about to be delivered in an intracellular format – ie through the cells. And they say in the presentation that sublingual permeation is fastest as “thinnest mucosa in the region”.

So in other words the drug can smash through the cells and these cells are the thinnest in the region which is why drug concentration rates are much higher.

This to me is a watershed moment and may herald a new class of drug delivery!

This is my interpretation and I could be completely wrong. But we all have to reach our own conclusions.

So – something I never ever do – I am putting a one off sentiment change to my post. SUDA is now a BUY.

We have a deal locked away with the anticipation that there are more to come. We have some animal results showing significant increase in *word disallowed by google concentration levels which IMO will lead to a bidding war for the product between China and the USA. And we have the first glimpses at what could be a brand new revolutionary way of oro-mucosal drug delivery.

With plenty more milestones ahead and no prospect of a capital raise and a volume increase occurring to remove stale shareholders I think the last few weeks have brought on a change in state of the company.

Good luck all