We live in a world that’s only just stopped reeling from the international COVID-19 viral pandemic.
The same world where microbes and viruses are becoming ever-resistant to antibiotics and other treatments (and where mystery outbreaks and bird flu have come to the fore).
And where ‘superbugs’ are no longer sci-fi medical concepts but very real problems inside hospitals everywhere, making staph infections look like a breeze in comparison.
As the human population rises and urban centres grow denser and denser while international and domestic travel routes become more and more efficient, the threat of disease (let alone pandemics) is only going to become more and more relevant to our day-to-day lives.
Don’t let COVID trauma hurt your returns
Believe me – this finance journalist is just as keen as you are to avoid thinking about the fact we might ever see lockdowns in our lives again.
But, the reality is, the risk is there. Viruses are, after all, more ancient than the human race. And they’ll probably outlive us.
So, we need to be rational enough to talk about it. Or maybe the right word is brave.
In the world of 2025 and beyond, it’s going to be important to keep a clean nose, if you will.
Enter Firebrick Pharma (ASX:FRE) – a company that’s got a product the world wants and needs, and is attractively priced at only 5cps.
So what does Firebrick sell?
Broad-spectrum nasal germ killer
Headed by respected industry doyen Dr Peter Molloy, Firebrick Pharma’s main product is Nasodine – a PVP-iodine-based germicide designed for nasal spray use.
For those playing at home – PVP-iodine is the same active ingredient in the antiseptic brand Betadine. Back in the day, Peter Molloy was the creator of Betadine Sore Throat Gargle and most of the Betadine over-the-counter range in Australia.
“That’s what inspired the idea of a nasal spray using the same active ingredient,” he said.
“I was always fascinated with the idea of using a topical antiseptic-like approach to treating colds by eliminating the viruses in the nasal passages, rather than taking a pill, it’s a lot safer, very effective, based on the clinical studies that we’ve done.”
And, Firebrick’s Nasodine product is already available in the world’s number one economy: The United States of America.
In short: The application of Nasodine can eliminate bugs – viruses and bacteria – in the nasal cavity of the user and, better still, Dr Molloy says resistance is not going to be an issue.
The foremost benefit for users here is the minimised risk of contraction when taking public transport with sick persons, as well as just navigating through busy crowds presenting the same risk.
Unlike many other pharma players on the ASX, Firebrick isn’t necessarily trying to cure anything – the name of the game is disease prevention and introducing a germ-killing nasal spray into a world that is now more concerned about nasal germs than ever before.
And, as Peter Molloy pointed out to HotCopper, the company is ‘ready to go’ – and already commercialising – with no forward R&D risk.
$15M of R&D already priced in
That takes a lot of the volatility out of a biotech stock, a sector notorious for rapid turnarounds in sentiment based on clinical trial data or regulatory approvals and rejections.
“My key message is that Firebrick is on the cusp of commercialising a product that the world needs, that doctors want, that consumers want – Nasodine nasal spray,” Dr Molloy said.
“It’s a world first… and we’re sitting at five cents a share. There’s tremendous upside potential for Firebrick Pharma in the next 12 months.”
“It kills all viruses and bacteria, but it doesn’t kill humans”
“It’s the first common cold treatment product and common cold preventative product that actually targets the viral cause of colds, instead of just symptoms, which all of the other cough and cold products do,” Dr Molloy said.
“It kills all viruses and bacteria, but it doesn’t kill humans,” he continued.
“And it kills all pandemic strains, so one of our motivations of putting Nasodine on the market is to make sure it’s available to healthcare professionals and consumers before the next pandemic comes along and who knows what it’ll be – a coronavirus, a bird flu…Povidone iodine – the active ingredient in Nasodine – kills them all, so it’s very important we have the product available.”
“Notably, as I’ve said, the company has already spent $15M to get to where it is and they have built a strong patent fence and produced a wealth of clinical data through six clinical trials that importantly, have shown Nasodine is safe to use.
“All of the R&D risk is essentially behind us. The manufacturing risk is behind us. We’ve solved all those problems. We’ve set up all the logistics, we have partners in place, and we’re now ready to pump the product out and watch the sales grow over the next 12 months,” Dr Molloy told HotCopper.
Nasodine is manufactured in Australia for the Singapore market – but also in California for the U.S. market, through a U.S. contract manufacturer.
Broad-based applicability
Dr Molloy’s clear bemusement that the company’s share price only reflects 5cps is understandable.
Especially after the company most recently announced a deal in Singapore that will see Nasodine on the shelves of the country’s largest pharmacy chain starting in January… and Singapore is a sophisticated and substantial pharmaceutical market, so watch this space as sales take off in early 2025.
Dr Molloy says Nasodine – a germicide – kills all viruses and bacteria, including pandemic-potential strains of coronavirus (still very much with us) and every other conceivable pandemic virus, including everything from Ebola to bird flu.
There’s another element to Firebrick Pharma’s overall value proposition when it comes to Nasodine – as per Dr Molloy’s discussion with HotCopper, the use of Nasodine can also help prevent viral shedding from the nose of the user, as demonstrated in a recent clinical trial.
That means Nasodine not only protects the user who applies it but also anybody sitting next to them.
Firebrick’s start to 2025 is going to be part commercialisation phase, part Asia region expansion – after Singapore, its next market to tap is the Philippines (one of the most heavily populated regions on earth.)
All in all: Dr Molloy sees Firebrick on a surprising growth trajectory in 2025, with the market definitely waking up to its multi-bagger potential.
Disclaimer: Firebrick contributed content for this article.
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