ARS Pharmaceuticals (SPRY) – Highlighting New Developments
Back on October 9th, in our morning Conversations podcast, shares of ARS Pharmaceuticals (SPRY) were discussed for the first time. This company focuses on the development of a novel, potentially first-in-class product candidate, neffy, for the emergency treatment of Type I allergic reactions including anaphylaxis. We highlighted how on August 9th, the company received FDA approval of neffy 2 mg for the treatment of Type I Allergic Reactions, including anaphylaxis, in adults and children who weigh greater than or equal to 30 kg (66lbs). “The approval represents the first significant innovation in the delivery of epinephrine in more than 35 years and is the first and only needle-free treatment option for patients and families living with severe allergic reactions.”
Then, just over a month later, we brought the stock back up because it announced it had entered into a licensing agreement with ALK-Abelló, who is headquartered in Denmark and also specialize in the development and manufacturing of allergy immunotherapy products. This licensing agreement will give ALK exclusive rights to commercialize neffy in Europe, Canada and other geographies outside of the U.S.
In today’s write-up, I’m highlighting new developments, which came after CEO Richard Lowenthal met with Cantor Fitzgerald. According to analyst Josh Schimmer, key takeaways included:
• On the topic of IQVIA prescription trends, data may be lagging by several weeks and thus doesn’t capture much of the cash-pay market. In 2025, the company expects neffy scripts to increase from approximately 800/week (most recent) to approximately 4000/week. This may put it on pace for around $100M revenue.
• Insurance companies are not pushing back on coverage. More than a third of insurance companies are covering neffy on formulary, with Express Scripts apparently just adding neffy to its formulary. “When not on formulary, ~50% of prior auths are being approved on first pass. About 70% of patients are getting insurance coverage for neffy – not bad for 3 months into launch.”
• Expansion into other outlets may happen sooner rather than later. According to Cantor, the largest manufacturer for safety kits on airplanes and other transportation groups has already approached SPRY. Discussions are ongoing. This will likely open the door for neffy use in schools, by police, potentially restaurants etc.
• Cantor says to expect an upcoming FARE (Food Allergy Research & Education) public service announcement featuring Patrick Mahomes (and maybe some other pop-stars) early next year. While this will be an unbranded campaign, it should nonetheless help with the adoption rates. Specialists Cantor has spoken to have suggested that ‘pop-star’ endorsements could move the needle for neffy.
