Hyloris New reformulation product addition in gastric acid conditions

Hyloris announced that it has entered into an exclusive licensing agreement to develop a ready-to-use formulation for intravenous (IV) administration of pantoprazole (proton pump inhibitor, PPI) to treat gastric acid-related conditions. According to management, there is limited clinical development required as the efficacy of the reference drug has already been established, and Hyloris expects to enter the first markets (likely US and EU) in 3 years. Note that according to guidance from the 1H24 results, the company believes it is sufficiently capitalised to fund the anticipated R&D expenditures of the current product candidates, which suggests additional funding may be required for new pipeline additions. We reiterate our €5 TP and Hold rating.