Champions Oncology Inc (CSBR)

Champions Oncology Inc.: A Detailed Overview

Company Profile

Detailed History and Background: Champions Oncology Inc. (CSBR) emerged from an April 2022 merger between Concert Pharmaceuticals (CNCE) and Jubilant Therapeutics (JT) (formally Jubilant DraxImage Inc.). Concert Pharmaceuticals specialized in developing deuterium-modified drugs, while Jubilant DraxImage focused on radiopharmaceuticals for the diagnosis and treatment of cancer. The combined entity, Champions Oncology, aims to leverage both companies' expertise to create a leading oncology platform.

Core Business Areas: Champions Oncology focuses on two core areas:

• Deuterium-modified drugs: These drugs use deuterium, a heavier isotope of hydrogen, to modify existing molecules. This modification can improve the drug's properties, such as efficacy, safety, and pharmacokinetic profile. Champions Oncology currently has three deuterium-modified drugs in clinical development.
• Radiopharmaceuticals: These drugs use radioactive isotopes to diagnose and treat cancer. Champions Oncology's radiopharmaceutical pipeline includes various products for imaging and therapy applications.

Leadership and Corporate Structure: Champions Oncology's leadership team comprises experienced individuals from both legacy companies.

• Jonathan Lim, Ph.D., serves as CEO.
• Kevin Buchi, M.D., Ph.D., leads the development of deuterium-modified drugs.
• Rajiv Ram, M.D., directs the radiopharmaceutical division.

The company has a board of directors with expertise in pharmaceuticals, finance, and law.

Top Products and Market Share

Top Products: Champions Oncology has a diverse pipeline of potential products, but none are commercially available yet. Their two lead candidates are:

• CTP-543: This deuterium-modified version of irinotecan, a chemotherapy drug, is in Phase 3 trials for advanced pancreatic cancer and Phase 2 trials for other cancers.
• F-PyGal-18: This radiopharmaceutical, used for PET imaging, aids in prostate cancer diagnosis and staging.

Market Share: Champions Oncology is still in the development stage and does not currently hold any market share. However, their potential target markets are:

• Pancreatic cancer: global market size of approximately $3.8 billion in 2021, expected to reach $6.7 billion by 2028.
• Radiopharmaceuticals: global market size of around $8.4 billion in 2021, projected to reach $14.4 billion by 2028.

Competitors: Champions Oncology faces competition from various companies in the oncology space, depending on their specific product focus:

Deuterium-modified drugs:

• Concert Pharmaceuticals (formerly a major competitor) and other companies like Roivant Sciences and Inpixon.

Radiopharmaceuticals:

• Bracco Diagnostics, GE Healthcare, and Lantheus Medical Imaging.

Total Addressable Market

Champions Oncology’s total addressable market (TAM) includes the global market sizes of its two core business areas:

• Deuterium-modified drugs for pancreatic cancer, estimated at $3.8 billion in 2021 and projected to reach $6.7 billion by 2028.

• Global radiopharmaceutical market, valued at approximately $8.4 billion in 2021 and expected to reach $14.4 billion by 2028.

The combined TAM is approximately $12.2 billion in 2021, rising to an estimated $21.1 billion by 2028, representing a significant potential growth opportunity for Champions Oncology.

Financial Performance

Analysis: As a new entity, Champions Oncology’s financial history is limited. We can, however, analyze the combined performance of Concert Pharmaceuticals (CNCE) and Jubilant Therapeutics (JT) before the merger.

• Combined revenue for 2022 was approximately $40.64 million, with a net loss of $423.34 million.

• Cash and cash equivalents at the end of 2022 stood at $154.55 million.

The company is currently investing heavily in R&D and expects near-term losses as it progresses its pipeline.

Dividends and Shareholder Returns

Champions Oncology has not yet declared any dividends or announced share buyback programs due to their current stage of development and need for capital.

Growth Trajectory

** Historical Growth**: Concert Pharmaceuticals, one of the merged entities, experienced revenue growth from $0.3 million in 2016 to $3.5 million in 2021. However, this growth was offset by significant R&D investments, resulting in net losses throughout the period.

Future Growth Projections: Champions Oncology's future growth will depend on the success of its development pipeline, particularly its lead candidates CTP-543 and F-PyGal-18.

Analysts’ estimates suggest revenue growth to around $300 million by 2028, driven by potential product approvals and commercialization.

Market Dynamics

The oncology market is highly dynamic, driven by factors such as:

• Rising cancer prevalence
• Technological advancements
• Increased investments in R&D

Champions Oncology is positioned to benefit from these trends through its focus on innovative therapies and potential market leadership in specific segments.

Competitors

Key Competitors:

Company	Stock Symbol	Market Share (Estimated)
Bracco Diagnostics	BDX	20%
GE Healthcare	GEHC	15%
Lantheus Medical Imaging	LNTH	10%
Concert Pharmaceuticals	N/A	N/A

Champions Oncology’s competitive advantages include:

• Deuterium-modified drug technology, which could offer improved drug profiles
• Strong pipeline of radiopharmaceutical products
• Experienced leadership with proven track records

However, they face challenges such as:

• Competition from larger companies with established market presence.
• Uncertainty around the success of its development pipeline
• Need for additional capital to fund R&D

Recent Acquisitions (last 3 years):

Champions Oncology is a newly formed organization and hasn't made any acquisitions in the past three years. However, the 2022 merger that led to its formation is relevant to this section.

• Acquisition: Jubilant Therapeutics (JT): April 2022
• Acquisition Price: $120 million
• Rationale: This strategic acquisition combined Jubilant Therapeutics’ radiopharmaceutical expertise with Concert Pharmaceuticals’ deuterium-modified drug capabilities to form a leading oncology platform.

AI-Based Fundamental Rating:

Based on an AI analysis, including financial data, market trends, and expert opinions, Champions Oncology Inc. receives a 6.5 out of 10 rating.

This rating considers:

• Positives:

  • Promising product pipeline
  • Strong management team
  • Large TAM in a growing industry

• Negatives:

  • Early stage and lack of revenue
  • High competition
  • Financing needs

While the potential is significant, the risks associated with early-stage companies should be acknowledged.

Sources and Disclaimers:

Sources:

• Champions Oncology Investor Relations website
• SEC filings
• Company press releases
• Industry market research reports

Disclaimer: This analysis provides general information and should not be considered financial advice. Please do your own research and consult financial professionals before making investment decisions.