Karessa's business concept is to develop and commercialise innovative products with clear competitive advantages. By combining the Company's patented drug delivery platform with clinically tested and proven substances the foundation is laid for a unique concept with great competitive advantages. From the patient perspective, a medicinal product with significantly faster effect is enabled. From the owner and investor perspectives, the concept entails a lower risk and shorter time to market, as compared with what is usual for drug development.
Karessa develops products for a global market. This business model will be adapted according to specific local market conditions. The overall objective is to optimise the value of the Company's product and project portfolio, and to minimise risk in its operations.
As far as possible, the Company will be responsible for development while registration, manufacturing and sales to end customers will be effected through project licensing, through product sales to selected partners, or by the Company itself.
The Company's revenue streams will therefore mainly consist of license revenues from partners as well as product sales to selected distributors. In both cases, the Company is seeking fully integrated business partners with the capacity to manage and support the products in their local markets.
Decisions concerning the business model are based on revenue potential, regulatory complexity and the costs for any local studies required.
Sales via licensed partners
In markets with specific requirements for costly, locally adapted studies for medicinal product approval, Karessa will sign license agreements with local pharmaceutical companies covering clinical studies, registration, sales and – if necessary – also manufacture. The licensing income in this case will consist of compensation in connection with milestones being reached and royalties based on the licensee's actual sales.
Product sales to distributors
In markets without special requirements for locally adapted studies, Karessa intends to manage all stages right up to the delivery of the finished product. Sales to end users will then take place through selected distributors. The price to partner companies will be agreed taking into account the retail sale price, anticipated volumes, and exclusivity where applicable.
Mats Nilsson, CEO
+46 8-768 22 33