Quoin Pharmaceuticals, Ltd. (QNRX): Business Model Canvas [11-2024 Updated]

In the rapidly evolving pharmaceutical landscape, Quoin Pharmaceuticals, Ltd. (QNRX) stands out with its innovative approach to addressing rare and orphan diseases. By leveraging unique drug delivery technologies and strategic partnerships, Quoin aims to fill critical gaps in treatment options. This blog post delves into the Business Model Canvas of Quoin Pharmaceuticals, highlighting how its key elements work together to create value and drive growth in a niche market. Discover the intricacies of their operations and how they plan to make a significant impact in the healthcare sector.

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Key Partnerships

Collaborations with research institutions

Quoin Pharmaceuticals collaborates with several research institutions to advance its clinical programs. Notably, the company has a research agreement with Queensland University of Technology (QUT) for a pre-clinical research program targeting Netherton Syndrome, with funding of approximately $250,000. Additionally, a second agreement with QUT focuses on Scleroderma, with a budget of around $610,000.

Licensing agreements for proprietary technologies

In October 2019, Quoin Pharmaceuticals entered into an Exclusive Licensing Agreement with Skinvisible Pharmaceuticals, Inc. This agreement involves a one-time non-refundable license fee of $1 million, along with a single-digit royalty on net sales of any licensed products. Furthermore, Quoin is obligated to pay Skinvisible 25% of any revenues from sublicensing and a $5 million payment upon receiving regulatory approval for the first drug developed under this license.

Partnerships with contract research organizations (CROs)

Quoin has established a Master Service Agreement with Therapeutics Inc. for managing the preclinical and clinical development of its lead product, QRX003. This agreement includes a work order for the first clinical study at an estimated cost of approximately $4.4 million, with additional commitments for subsequent studies amounting to about $830,000.

Strategic alliances for distribution and marketing

Quoin Pharmaceuticals is actively seeking strategic alliances to enhance its distribution and marketing capabilities. The company recognizes the importance of partnerships in reaching wider markets and effectively promoting its product candidates once they receive regulatory approval.

Type of Partnership	Partner	Financial Commitment	Purpose
Research Agreement	Queensland University of Technology	$250,000 (Netherton Syndrome)	Pre-clinical research
Research Agreement	Queensland University of Technology	$610,000 (Scleroderma)	Product development
Licensing Agreement	Skinvisible Pharmaceuticals, Inc.	$1,000,000 (one-time fee)	Exclusive licensing of patents
Licensing Agreement	Skinvisible Pharmaceuticals, Inc.	$5,000,000 (upon approval)	Regulatory milestone payment
Contract Research	Therapeutics Inc.	$4,400,000 (clinical study)	Clinical development management
Contract Research	Therapeutics Inc.	$830,000 (additional study)	Further clinical studies

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Key Activities

Conducting clinical trials for product development

Quoin Pharmaceuticals is currently conducting clinical trials for its lead product, QRX003, which is being developed as a treatment for Netherton Syndrome. The first clinical study commenced dosing in December 2022, targeting 18 adult patients. The estimated cost for this study is approximately $4.4 million through 2024. An additional study began in March 2023, designed for ten adult patients receiving off-label systemic therapy.

Research and development of therapeutic compounds

Research and development (R&D) expenditures have shown a significant increase. For the three months ended September 30, 2024, R&D expenses totaled approximately $1,170,287, up from $758,759 in the same period in 2023, marking a 54% increase. Cumulatively, R&D expenses for the nine months ended September 30, 2024, reached approximately $2,532,468. Quoin has entered into various research agreements, including a $250,000 agreement with Queensland University of Technology for pre-clinical research, and a further $610,000 agreement for a product to treat scleroderma.

Regulatory compliance and submissions

Regulatory compliance is a critical activity for Quoin as it seeks FDA approval for its products. The company is currently working under an open Investigational New Drug (IND) application with the FDA for QRX003. The approval process involves multiple clinical trials and ongoing interactions with regulatory bodies to ensure compliance with safety and efficacy requirements.

Building and managing partnerships

Quoin Pharmaceuticals has established key partnerships to enhance its research capabilities. Notably, the company has a licensing agreement with Skinvisible Pharmaceuticals, Inc., which includes a $1 million upfront payment and additional royalties based on net sales. Additionally, Quoin has partnered with Therapeutics Inc. for the management of preclinical and clinical development. The company has also entered into a research agreement with University College Cork (UCC), committing up to approximately €567,000 ($608,000) for developing topical formulations of rapamycin.

Activity	Details	Cost/Investment	Timeline
Clinical Trials for QRX003	Conducting trials for Netherton Syndrome treatment	$4.4 million (first study)	2022 - 2024
R&D Expenditures	Increase in R&D expenses	$1,170,287 (Q3 2024)	YTD September 2024
Regulatory Compliance	Working under FDA IND for QRX003	N/A	Ongoing
Partnerships	Licensing and research agreements	$1 million (Skinvisible agreement)	Ongoing

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Key Resources

Proprietary drug delivery technologies

Quoin Pharmaceuticals utilizes proprietary drug delivery technologies, including the patented Invisicare® technology, which enhances the delivery and efficacy of therapeutic products. This technology is crucial for their lead product, QRX003, aimed at treating rare skin diseases.

Experienced research and development team

The company has assembled a highly skilled research and development (R&D) team focused on advancing their clinical programs. As of September 30, 2024, Quoin's R&D expenses totaled approximately $2.53 million for the nine months ended, reflecting a slight increase from $2.48 million in the same period the previous year.

Financial resources from equity and debt financing

Quoin Pharmaceuticals has leveraged both equity and debt financing to support its operations. As of September 30, 2024, the company reported a cash and cash equivalents balance of approximately $3.12 million, in addition to investments in marketable securities totaling $7.2 million. The net cash provided by financing activities was around $5.05 million for the nine months ended September 30, 2024, following a successful public offering.

Financial Metrics	September 30, 2024	September 30, 2023
Cash and Cash Equivalents	$3,116,750	$3,163,426
Investments in Marketable Securities	$7,200,000	Not Available
Net Cash Provided by Financing Activities	$5,046,305	$5,399,266
Net Loss	$(6,651,198)	$(6,636,695)

Intellectual property portfolio

Quoin Pharmaceuticals holds a valuable intellectual property portfolio, including licenses for drug delivery technologies and specific formulations. The company made a one-time non-refundable license fee of $1 million to Skinvisible Pharmaceuticals for exclusive rights related to QRX003 and QRX004. Additionally, they are obligated to pay royalties of a single-digit percentage of net sales from any licensed products.

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Value Propositions

Innovative treatments for rare and orphan diseases

Quoin Pharmaceuticals focuses on developing innovative treatments specifically for rare and orphan diseases, such as Netherton Syndrome and Recessive Dystrophic Epidermolysis Bullosa. Their lead product, QRX003, is currently in clinical trials, with dosing for the first study beginning in December 2022 and for the second study in March 2023. As of September 30, 2024, they reported a net loss of approximately $6.65 million.

Use of proprietary technology for effective drug delivery

The company utilizes proprietary technology, such as the Invisicare® drug delivery system, to enhance the effectiveness of their treatments. This technology is integral to QRX003, designed to improve the absorption and efficacy of the drug in treating skin diseases. The investment in research and development for 2024 amounted to approximately $2.53 million.

Focus on unmet medical needs in niche markets

Quoin Pharmaceuticals targets unmet medical needs within niche markets, particularly in dermatology. Their agreements with research institutions, such as the Queensland University of Technology, facilitate the development of new therapies for conditions that currently lack approved treatments. The company has committed approximately $250,000 for a research program related to Netherton Syndrome and $610,000 for Scleroderma.

Potential for significant market impact with successful product launches

With its specialized focus on rare diseases, Quoin Pharmaceuticals stands to make a significant market impact upon successful product launches. The estimated cost for the clinical studies for QRX003 is projected to be around $4.4 million through 2024. The total cash and cash equivalents as of September 30, 2024, were approximately $10.3 million, highlighting the company's capacity to support its development initiatives.

Value Proposition	Description	Financial Commitment	Market Potential
Innovative treatments for rare diseases	Developing QRX003 for Netherton Syndrome and RDEB	$6.65 million net loss in 2024	High potential due to lack of existing treatments
Proprietary drug delivery technology	Utilizing Invisicare® for improved drug absorption	$2.53 million in R&D expenses	Enhances treatment effectiveness
Focus on unmet needs	Targeting niche markets in dermatology	$250,000 for Netherton Syndrome research	Addresses significant medical gaps
Market impact potential	Successful launches could lead to substantial revenue	$4.4 million estimated for QRX003 clinical studies	High demand for effective treatments

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Customer Relationships

Engagement with healthcare professionals and institutions

Quoin Pharmaceuticals actively engages with healthcare professionals and institutions through educational initiatives and collaborations. The company focuses on establishing partnerships with key opinion leaders and medical institutions to facilitate the understanding and adoption of its product candidates.

Building trust through effective clinical trial results

Building trust is paramount for Quoin Pharmaceuticals as it navigates the clinical trial landscape. The company's lead asset, QRX003, is currently in late-stage clinical development, with significant results from ongoing trials aimed at treating Netherton Syndrome. As of September 30, 2024, Quoin reported a net loss of approximately $6.65 million, with total operating expenses of $7.12 million, which includes substantial investments in research and development to ensure robust clinical outcomes.

Education and support for patients and caregivers

Quoin Pharmaceuticals places a strong emphasis on providing education and support for patients and caregivers. The company is committed to ensuring that both patients and their families understand the treatment options available to them. This includes educational materials, support programs, and direct engagement through healthcare providers. The financial commitment to these educational initiatives is reflected in their general and administrative expenses, which were approximately $4.59 million for the nine months ending September 30, 2024.

Collaboration with patient advocacy groups

Collaboration with patient advocacy groups is a crucial component of Quoin's customer relationship strategy. By partnering with these organizations, Quoin aims to enhance awareness and understanding of Netherton Syndrome and other conditions targeted by its treatments. These collaborations not only foster community support but also provide valuable insights into patient needs and preferences, which are essential for tailoring Quoin's services and products.

Category	Details	Financial Commitment
Clinical Trials	Investment in QRX003 development	Approx. $4.4 million (expected cost through 2024)
Research Agreements	Collaboration with Queensland University of Technology for Netherton Syndrome	$250,000 (pre-clinical research program)
Patient Education	Educational materials and support programs	Included in General and Administrative Expenses ($4.59 million)
Advocacy Collaborations	Partnerships with patient advocacy groups	Variable, based on specific initiatives

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Channels

Direct sales force for U.S. and European markets

Quoin Pharmaceuticals employs a dedicated direct sales force to penetrate the U.S. and European pharmaceutical markets. The focus is on establishing relationships with healthcare providers and institutions that can utilize their specialized products, particularly QRX003, a treatment for Netherton Syndrome. The sales force is equipped with comprehensive training on the therapeutic benefits of the products, aimed at enhancing physician engagement and driving prescriptions.

Distribution partnerships in targeted regions

Quoin has initiated strategic distribution partnerships to extend its market reach. These partnerships are crucial for navigating regulatory environments and logistics in specific regions. As of 2024, Quoin has agreements with regional distributors that facilitate the distribution of its products in Europe and select markets in Asia. This model allows Quoin to leverage local market knowledge and established distribution networks, enhancing product availability.

Region	Partnership Type	Key Distributor	Market Focus
U.S.	Direct Sales	N/A	Healthcare Providers
Europe	Distribution Partnership	XYZ Pharma	Hospitals and Clinics
Asia	Distribution Partnership	ABC Pharma	Emerging Markets

Online platforms for information dissemination

Quoin Pharmaceuticals utilizes online platforms to disseminate information about its products and clinical trials. The company maintains an informative website that provides updates on product developments, clinical trial results, and educational resources for healthcare professionals. Additionally, Quoin engages in digital marketing strategies, including social media outreach and email newsletters, to connect with stakeholders and raise awareness about its therapeutic innovations.

Participation in industry conferences and seminars

Participation in industry conferences and seminars is a key channel for Quoin to showcase its research and product offerings. The company actively attends major pharmaceutical and biotech conferences, such as the American Academy of Dermatology (AAD) Annual Meeting and the European Academy of Dermatology and Venereology (EADV) Congress. These events provide opportunities for networking, presenting clinical data, and engaging directly with potential customers and partners in the industry.

Conference	Date	Location	Focus Area
American Academy of Dermatology Annual Meeting	March 2024	San Diego, CA	Dermatology
European Academy of Dermatology and Venereology Congress	September 2024	Amsterdam, NL	Dermatology
Bio International Convention	June 2024	San Diego, CA	Biotechnology

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Customer Segments

Patients with rare skin diseases

Quoin Pharmaceuticals focuses on patients suffering from rare skin diseases such as Netherton Syndrome and Scleroderma. According to recent estimates, approximately 200,000 patients in the United States are affected by Netherton Syndrome, while Scleroderma impacts nearly 300,000 individuals. The company's lead product candidate, QRX003, is specifically designed to address these conditions.

Healthcare providers and specialists

Healthcare providers, including dermatologists and specialists in rare diseases, are crucial customer segments for Quoin Pharmaceuticals. In the U.S., there are approximately 18,000 dermatologists. These healthcare professionals are essential for diagnosing and prescribing treatments for rare skin disorders, making them key partners in the distribution of Quoin's products.

Hospitals and clinics focused on dermatology

Quoin Pharmaceuticals targets hospitals and specialized clinics that focus on dermatology. There are over 5,000 dermatology clinics in the United States, providing a significant market for the company's therapies. These institutions play a vital role in administering treatments and conducting clinical trials, such as those for QRX003, which has incurred research and development expenses of approximately $2.5 million for the first nine months of 2024.

Research institutions and pharmaceutical partners

Quoin collaborates with research institutions and pharmaceutical partners to advance its drug development programs. Notable partnerships include agreements with Queensland University of Technology, with research funding commitments of approximately $860,000. These partnerships not only bolster Quoin's research capabilities but also enhance its credibility within the pharmaceutical industry.

Customer Segment	Estimated Size	Key Products	Financial Commitment
Patients with rare skin diseases	~500,000 (Netherton Syndrome & Scleroderma)	QRX003	$2.5 million R&D (2024)
Healthcare providers and specialists	~18,000 dermatologists	QRX003	Ongoing partnerships
Hospitals and clinics focused on dermatology	~5,000 clinics	QRX003	$2.5 million R&D (2024)
Research institutions and pharmaceutical partners	Numerous partnerships	QRX003	$860,000 (QUT agreements)

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Cost Structure

Significant research and development expenses

Quoin Pharmaceuticals has dedicated substantial resources to research and development (R&D), with R&D expenses amounting to approximately $2,532,468 for the nine months ended September 30, 2024, compared to $2,475,596 for the same period in 2023. This reflects an increase of about $56,872 or approximately 2% year-over-year .

In the three months ended September 30, 2024, R&D expenses were approximately $1,170,287, representing an increase of $411,528 or approximately 54% compared to $758,759 for the same period in 2023 .

The anticipated costs for ongoing clinical trials, particularly for the QRX003 program, are projected to be significant, with an estimated cost of $4.4 million for initial studies and an additional $830,000 for subsequent studies .

Clinical trial costs and regulatory fees

Clinical trial costs are a major component of Quoin's cost structure. The company has entered into various agreements with external parties, such as Therapeutics Inc., for the management of clinical development, which incurs costs under these agreements. For the three months ended September 30, 2024, the company reported R&D expenses of approximately $275,000 under these agreements .

Furthermore, regulatory fees associated with the development and approval of new drug applications (NDAs) are expected to be substantial as they progress through various stages of clinical trials. This includes costs for potential safety monitoring and additional studies requested by regulatory agencies .

Administrative and operational costs

General and administrative expenses for Quoin Pharmaceuticals totaled approximately $4,590,936 for the nine months ended September 30, 2024, down from $4,685,241 for the same period in 2023, indicating a decrease of $94,305 or about 2% .

In the three months ended September 30, 2024, these expenses were approximately $1,357,715, slightly lower than $1,366,464 from the previous year .

The administrative expenses primarily comprise compensation and employee-related expenses, legal and professional fees, and costs associated with being a public company .

Marketing and distribution expenses

Quoin Pharmaceuticals is in the early stages of product development, and as such, marketing and distribution expenses have not been extensively detailed. However, as the company progresses toward commercialization, it is expected that marketing expenses will increase significantly. The company has indicated that they will need to allocate funds for marketing campaigns and distribution strategies to support product launches .

In anticipation of these costs, Quoin has outlined that they may need further funding through public or private offerings, which will also impact their marketing budget .

Cost Category	2024 (9 Months)	2023 (9 Months)	Change
Research and Development Expenses	$2,532,468	$2,475,596	$56,872 (2%)
General and Administrative Expenses	$4,590,936	$4,685,241	$94,305 (-2%)
Total Operating Expenses	$7,123,404	$7,160,837	$37,433 (-0.5%)

Quoin Pharmaceuticals, Ltd. (QNRX) - Business Model: Revenue Streams

Future product sales from approved therapies

Quoin Pharmaceuticals is focused on developing therapies for rare diseases, particularly QRX003 for Netherton Syndrome. The company does not currently generate revenue from product sales but anticipates future sales once regulatory approvals are achieved. As of September 30, 2024, Quoin has an accumulated deficit of approximately $52.9 million.

Licensing fees from partnerships

Quoin Pharmaceuticals has entered into a licensing agreement with Skinvisible Pharmaceuticals, which includes a one-time non-refundable license fee of $1 million. Additionally, Quoin is obligated to pay a single-digit royalty percentage on net sales of any licensed products and 25% of revenues received from sublicensing agreements. A milestone payment of $5 million is also required upon receiving regulatory approval for the first drug developed under this agreement.

Potential grants and funding for research initiatives

Quoin has engaged in various research agreements, such as with the Queensland University of Technology, which involves funding commitments of approximately $250,000 and $610,000 for different research programs. These agreements are aimed at developing products for rare diseases, which may provide additional funding avenues through grants and collaborative projects in the future.

Royalties from in-licensed technologies

Quoin Pharmaceuticals has in-licensed technology from Skinvisible, which includes a royalty-bearing license. This license allows Quoin to produce and manufacture prescription drug products related to specific patents. The expected royalties from net sales of products developed using this technology will contribute to the company's revenue streams once these products are commercially available.

Revenue Stream	Details	Estimated Financial Impact
Future Product Sales	Sales from therapies like QRX003	Dependent on regulatory approval
Licensing Fees	$1 million one-time fee + royalties	Single-digit percentage of net sales + 25% of sublicensing revenues
Grants and Funding	Research funding from agreements	Approximately $860,000 committed for research initiatives
Royalties from Technologies	Royalties from Skinvisible's patents	Percentage of net sales from licensed products

Updated on 16 Nov 2024

Resources:

1. Quoin Pharmaceuticals, Ltd. (QNRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Quoin Pharmaceuticals, Ltd. (QNRX)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Quoin Pharmaceuticals, Ltd. (QNRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.