Financial Markets Research: Santarus, Inc.'s Zegerid

Summary

Introduction

Following the lackluster 2004 launch of an oral suspension formulation of Santarus' lead product, Zegerid (a fast-acting proton pump inhibitor) much of Santarus' future success is tied to the commercial potential for the recently launched Zegerid oral capsule formulation to drive near-term revenues.

Highlights

Despite a very competitive prescription PPI landscape, we believe that Zegerid's rapid absorption profile and data supporting its use in patients with nocturnal breakthrough GERD symptoms should provide Santarus and its marketing partner Otsuka with a relatively compelling marketing message for physicians.As a result, we forecast US Zegerid revenues slightly ahead of Wall Street consensus.

Scope

• Analyzes the commercial potential for Santarus' Zegerid capsule, the first fast-acting capsule PPI to be approved the US FDAh3>
• Datamonitor interviewed eight gastroenterologists and primary care physicians familiar with the Zegerid oral capsule in the course of research

Reasons to Purchase

• Understand the commercial potential for Santarus' Zegerid through in-depth analysis based on interviews with leading experts
• Anticipate likely changes in the future market dynamics for GERD therapies following the likely success of Zegerid

Contents

• Summary
• Zegerid revenues expected to reach $229m by 2010
• Santarus, Inc.
• Overview
• Zegerid
• Gastroesophageal Reflux Disease
• Overview
• Proton-pump inhibitors the standard of care for GERD patients
• First immediate-release PPI approved in late 2004
• Zegerid capsules launced in late March 2006
• Factors Affecting The Potential For Santarus' Zegerid
• Physicians view immediate-release profile as intriguing GERD option
• Data in nocturnal GERD patients could further spur Zegerid utilization
• Third-party reimbursement tier key to future Zegerid growth
• Additional OTC formulations could inhibit future growth in prescription PPI agents
• Can Zegerid drive PRN dosing for mild-to-moderate GERD?
• Datamonitor Zegerid Forecast
• Novel marketing message and PRN potential should help Zegerid gain niche role
• Product profile and PRN potential could make Zegerid an attractive OTC target
• Appendix
  • Supplementary data
  • Datamonitor Healthcare
  • Disclosure information
  • Ask the analyst
• List of Tables
  • Table 1: Estimated US Zegerid revenues 2006-2010
  • Table 2: Estimated US Zegerid revenues 2006-2010