Paion now moving in new direction, analysts note

German drug developer Paion AG (FSE: PA8) is moving beyond the bat saliva-derived stroke project desmoteplase, recently sold to Danish firm Lundbeck (The Pharma Letter February 29), and will attempt to turn itself into an anesthesiology-focused European speciality business, say analysts at Edison Investment Research.

This will involve the potential licensing in of local rights to marketed anaesthetic agents, and building these around remimazolam to meet the needs of the typical anaesthetist’s “toolbox.” Local rights to remimazolam might also be retained – something that could prove attractive to potential partners.

Paion’s new strategy might enable it to offer an ex-Japan remimazolam licensing partner a new deal structure, and acquiring rights to niche marketed products could provide it with a small revenue stream. The recent disposal of desmoteplase to Lundbeck for 20.1 million euros ($26.4 million), along with cutting staff from 25 to 11, will secure Paion into 2014 in the absence of licensing income, including the repayment of a 6.9 million euros loan.