Drug repurposing can provide a fast and low-risk return on investment, so long as it meets a number of criteria, such as addressing unmet medical needs.
This is according to a new report from ERBI, the lifescience and healthcare membership organisation, which has examined the developments in this area along with those in other key areas of the industry such as regenerative medicine and the future of consumer electronics in healthcare.
It captured the output from the recent Bench2Boardroom event, at which international speakers participated in round-table discussions.
Barnaby Perks, marketing director for ERBI, said: 'Repurposing brings together specialists in drug and delivery development.
'We have seen greater demand for novel drug-delivery devices over recent months, suggesting that this sector of the industry is picking up first.
'There are a growing number of successful companies based on repurposing - including Norgine, Serentis and Acacia Pharma - that were represented in the discussion.' Repurposing can typically achieve one of three objectives: create a new use for an existing drug or molecule; reformulate a drug for controlled release or novel device, for example inhaler or nasal spray; or develop a more effective chemical enhancement.
Where it is possible to offer a new use or form of delivery and to enhance efficacy, then this offers the greatest potential for patent approval.
A big change in the industry came in 2002 following the explosion of molecular information, which showed new targets and pathways.
A new approach evolved: identifying a biological target, finding something from the existing pharmacopoeia to hit it with, then moving quickly to testing under clinical conditions.
This process is fast as the drugs are already licensed for use.
Andy Richards, a biotechology entrepreneur, said there is the promise of enormous untapped potential beyond the existing pharmacopoeia, as this only amounts to 1-3,000 drugs currently in development or recently released, and are mainly in the UK and the USA.
There are many other older drugs, or those in small territories, that hold more potential.
For example Galanthamine, used to treat Alzheimer's, was used to treat polio in east Europe before it was repurposed.
However, Peter Stein of Norgine warns that the commercial case must be made first.
He said the vital factor is to establish that the drug addresses a real problem.
'The starting point should be the patient and any issues arising from their current treatment.
'A more effective solution can then be created.
'A clinical differentiator has an impact on the price and therefore the return on investment.
'If you can determine that you will be able to deliver a clear medical benefit, assess the amount of technical risk involved and be confident in success, then these are strong indicators that the drug will be profitable,' he explained.
Nigel Pitchford, of Encore Ventures, said that the challenge for the investor is that they are only in for a period of time and they need to see added value.
He said: 'If risk goes up then value goes up as it is harder to replicate, but this is only true if the drug is addressing an unmet need.
'Clarifying the IP position is not easy.' Peter Stein suggested that the product should be engineered so that it is difficult to copy, which can create barriers.
'Alternatively the product can offer something new by identifying a solution and delivering it in a different way, such as new isomer or a different dosage or delivery, for example controlled release,' he explained.
Nigel Pitchford believes the process provides an attractive package for an investor and said: 'There is usually a credible team with a good track record and scientific knowledge.
'The expectation of an investor is a return of between two and four times the investment, which may not seem a lot but this is a pipeline with a great promise that it will deliver.' Harriet Fear, chief executive officer of ERBI, said: 'All three strands of the report reveal examples of business models that are proving successful in moving from scientific breakthrough to patient bedside.
'This is a rapidly evolving industry and it was interesting to gain an international perspective from our speakers,' she concluded.
