Sunshine Biopharma, Inc. (SBFM): Business Model Canvas [11-2024 Updated]

Sunshine Biopharma, Inc. (SBFM) is making waves in the pharmaceutical industry with its innovative approach to affordable generic medications and cutting-edge drug candidates. By leveraging key partnerships, a dedicated research and development focus, and a commitment to high-quality standards, SBFM is positioned to address critical health needs, particularly in the realms of cancer and viral infections. Dive deeper into the intricacies of SBFM's business model canvas to understand how this company is carving its niche in the market.

Sunshine Biopharma, Inc. (SBFM) - Business Model: Key Partnerships

Collaborations with research institutions

Sunshine Biopharma has engaged in strategic collaborations with various research institutions to enhance its drug development pipeline. Notably, the company became the exclusive, worldwide licensee of three patents from the University of Arizona related to small molecules that inhibit the Coronavirus protease, PLpro, as of February 24, 2023. This partnership aims to expand the company's capabilities in antiviral drug development.

Partnerships with generic pharmaceutical manufacturers

The company's wholly owned subsidiary, Nora Pharma, holds 152 Drug Identification Numbers (DINs) issued by Health Canada for prescription drugs currently on the market in Canada. These DINs were acquired through in-licenses or cross-licenses from international manufacturers of generic pharmaceutical products. This strategic partnership allows Sunshine Biopharma to leverage existing products while expanding its market presence in Canada.

Licensing agreements for drug development

Sunshine Biopharma has entered into several licensing agreements to bolster its drug development efforts. The company owns four Natural Product Numbers (NPNs) issued by Health Canada for over-the-counter products, including:

• NPN 80089663 - Essential•9
• NPN 80093432 - Calcium-Vitamin D
• NPN 80125047 - L-Citrulline
• NPN 80127436 - Taurine

These licensing agreements provide Sunshine Biopharma with the necessary regulatory approvals to manufacture and sell these OTC products, enhancing its product portfolio and revenue potential.

Partnership Type	Details	Benefits
Research Institutions	University of Arizona - Exclusive license for PLpro inhibitor patents	Enhanced antiviral drug development capabilities
Generic Manufacturers	152 DINs from international generic manufacturers	Access to established prescription drugs in Canada
Licensing Agreements	Four NPNs for OTC products	Regulatory approval for product sales in Canada

Sunshine Biopharma, Inc. (SBFM) - Business Model: Key Activities

Research and development of pharmaceutical products

Sunshine Biopharma is actively engaged in research and development (R&D) for various pharmaceutical products, focusing on oncology and antiviral therapies. Notably, they are developing a first-in-class PLpro inhibitor aimed at treating SARS-CoV2 and other related coronaviruses. The company has also paused development on Adva-27a, a small chemotherapy molecule for pancreatic cancer, pending further analysis of unfavorable in vitro results obtained in 2023.

For the nine months ended September 30, 2024, R&D expenses totaled $784,630 compared to $1,039,502 during the same period in 2023, indicating a decrease of $254,872.

Manufacturing and distribution of generic drugs

Sunshine Biopharma operates through its subsidiary, Nora Pharma, which focuses on manufacturing and distributing generic pharmaceutical products. Nora Pharma holds 152 Drug Identification Numbers (DINs) issued by Health Canada for prescription drugs currently available in the Canadian market.

During the nine months ended September 30, 2024, the company generated revenues of $25,279,291, a significant increase of 54% from $16,412,586 in the same period of the prior year. This increase is attributed to expanded marketing and sales efforts.

The direct cost of generating these revenues was $17,702,546 for the nine months ended September 30, 2024, equating to 70% of revenues.

Marketing efforts through subsidiary Nora Pharma

Nora Pharma has been instrumental in Sunshine Biopharma's marketing strategy, contributing significantly to revenue growth. Marketing expenses increased to $737,116 for the nine months ended September 30, 2024, compared to $502,987 in the prior year.

As of September 30, 2024, Sunshine Biopharma reported a gross profit of $7,576,745, up from $5,771,125 in the same period in 2023.

Key Activity	Details	Financial Impact
Research and Development	Focus on oncology and antiviral therapies, including PLpro inhibitor and Adva-27a	R&D expenses of $784,630 (2024), down from $1,039,502 (2023)
Manufacturing and Distribution	152 DINs for generic drugs, sales through Nora Pharma	Revenues of $25,279,291 (2024), up 54% from $16,412,586 (2023)
Marketing Efforts	Increased marketing strategy through Nora Pharma	Marketing expenses of $737,116 (2024), up from $502,987 (2023)

Sunshine Biopharma, Inc. (SBFM) - Business Model: Key Resources

Intellectual property (patents and licenses)

Sunshine Biopharma holds significant intellectual property assets, including:

• 152 DINs issued by Health Canada for prescription drugs currently on the market in Canada, secured through in-licenses or cross-licenses from international manufacturers.
• Four NPNs issued by Health Canada for OTC products:
• NPN 80089663 for Essential•9
• NPN 80093432 for Calcium-Vitamin D
• NPN 80125047 for L-Citrulline
• NPN 80127436 for Taurine
• Ownership of patents related to:
• Adva-27a for pancreatic cancer (US Patent Numbers 8,236,935 and 10,272,065).
• Provisional patents for treatments targeting Coronavirus infections and mRNA molecules capable of destroying cancer cells.
• Exclusive worldwide license from the University of Arizona for three patents related to small molecules inhibiting Coronavirus protease PLpro.

Manufacturing facilities in Canada

Sunshine Biopharma operates its manufacturing facilities in Canada, which are crucial for producing its portfolio of pharmaceutical and OTC products. The company has invested in:

• Property & Equipment: Valued at $590,801 as of September 30, 2024 .
• Intangible Assets: Totaling $2,942,684, which include licenses necessary for manufacturing .
• Facilities that comply with Health Canada regulations for the production of its generic pharmaceuticals, ensuring a steady supply for its market demands.

Experienced management team and workforce

Sunshine Biopharma boasts an experienced management team and workforce, which is pivotal for its operations:

• Management Team: Includes professionals with extensive backgrounds in pharmaceuticals and biotechnology, contributing to the strategic direction and operational efficiency of the company.
• Workforce: As of September 30, 2024, general and administrative expenses reached $11,351,144, reflecting the investment in skilled personnel.
• Employee Expansion: The company has recently hired additional staff, increasing its capacity to support operational growth.

Resource Type	Description	Value / Quantity
Intellectual Property	DINs and NPNs	152 DINs, 4 NPNs
Patents	Adva-27a and others	Multiple US Patents
Manufacturing Facilities	Property & Equipment	$590,801
Intangible Assets	Licenses and Patents	$2,942,684
Management Team	Experienced professionals	Not quantifiable
Workforce	General and Administrative Expenses	$11,351,144

Sunshine Biopharma, Inc. (SBFM) - Business Model: Value Propositions

Affordable generic medications for various health conditions

Sunshine Biopharma, through its subsidiary Nora Pharma, offers a portfolio of 63 generic prescription drugs in Canada, which are priced competitively to make them accessible to a broader audience. The revenue generated from this segment for the nine months ended September 30, 2024, was approximately $25,279,291, reflecting a 54% increase from $16,412,586 during the same period in 2023 . This growth is attributed to enhanced marketing and sales efforts aimed at expanding their reach and customer base.

Innovative drug candidates targeting cancer and viral infections

Sunshine Biopharma is actively developing innovative drug candidates such as Adva-27a, a small chemotherapy molecule specifically targeting pancreatic cancer, which is currently in the IND-enabling stage. Additionally, the company has embarked on creating a first-in-class PLpro inhibitor aimed at treating SARS-CoV-2 and other coronaviruses . The commitment to innovation in drug development is underscored by their investment in research and development, which amounted to $784,630 for the nine months ended September 30, 2024 .

Commitment to high-quality standards in pharmaceuticals

Sunshine Biopharma emphasizes stringent quality standards in its operations. The company holds 152 Drug Identification Numbers (DINs) issued by Health Canada, which are necessary for the sale of pharmaceutical products in Canada. This adherence to regulatory standards ensures that their products meet the high-quality expectations of healthcare providers and patients alike . The total assets of Sunshine Biopharma as of September 30, 2024, were reported at $30,056,816, indicating a robust operational framework to support their quality initiatives.

Financial Metric	Q3 2024	Q3 2023	Change (%)
Revenue	$8,435,178	$5,957,668	42%
Gross Profit	$2,866,151	$1,990,256	44%
Net Loss	($1,197,803)	($651,482)	84%
Cash and Cash Equivalents	$12,206,655	$18,846,140	-35%

The company’s focus on affordability, innovation, and quality not only differentiates it from competitors but also enhances its value proposition to customers and stakeholders alike .

Sunshine Biopharma, Inc. (SBFM) - Business Model: Customer Relationships

Direct relationships with pharmacies and healthcare providers

Sunshine Biopharma, through its subsidiary Nora Pharma, maintains direct relationships with over 1,000 pharmacies across Canada. This approach allows for tailored service delivery and better alignment with customer needs. The company emphasizes partnerships with healthcare providers to ensure the availability of its pharmaceutical products, particularly generic drugs, which accounted for approximately 97% of total revenues as of September 30, 2024.

Customer support for product inquiries and education

Sunshine Biopharma offers robust customer support services, with dedicated teams available to handle product inquiries. For the nine months ended September 30, 2024, the company incurred $11,351,144 in general and administrative expenses, which includes costs related to customer support and education. This investment aims to enhance customer satisfaction and retention by providing comprehensive product information and assistance.

Engagement through marketing campaigns and promotions

The company has significantly expanded its marketing efforts, contributing to a revenue increase of 54%, from $16,412,586 in the nine months ended September 30, 2023, to $25,279,291 in the same period of 2024. Sunshine Biopharma employs various marketing strategies, including promotional campaigns aimed at both pharmacies and healthcare providers, to drive sales and engagement.

Metric	Q3 2023	Q3 2024	Change (%)
Revenue	$5,957,668	$8,435,178	42%
Cost of Sales	$3,967,412	$5,569,027	40%
Gross Profit	$1,990,256	$2,866,151	44%
General & Administrative Expenses	$2,769,730	$3,972,504	43%
Net Loss	($651,482)	($1,197,803)	84%

Overall, Sunshine Biopharma's strategy focuses on strengthening customer relationships through direct engagement with pharmacies and healthcare providers, comprehensive customer support, and targeted marketing initiatives, which collectively aim to enhance sales and customer loyalty.

Sunshine Biopharma, Inc. (SBFM) - Business Model: Channels

Direct sales to pharmacies in Canada

Sunshine Biopharma, through its subsidiary Nora Pharma, generates a significant portion of its revenue by selling directly to pharmacies across Canada. As of September 30, 2024, the company reported total revenues of $25,279,291 for the nine-month period, with the majority attributed to its prescription generic pharmaceuticals segment, which accounts for approximately 97% of total revenues.

The direct sales model allows Sunshine Biopharma to engage with pharmacies, ensuring that their products are readily available to consumers. The company has secured 152 Drug Identification Numbers (DINs) issued by Health Canada for prescription drugs, demonstrating its ability to market a diverse range of pharmaceutical products.

Online platforms for product information and orders

Sunshine Biopharma utilizes online platforms to disseminate product information and facilitate orders. This digital strategy enables the company to reach a broader audience, providing essential details about its pharmaceutical offerings, including over-the-counter products. As of September 30, 2024, the company had $12,206,655 in cash and cash equivalents, which reflects its ongoing investment in digital marketing and online sales capabilities.

Metric	Value
Cash and Cash Equivalents	$12,206,655
Total Revenues (9 months ended Sept 30, 2024)	$25,279,291
Percentage of Revenue from Generic Pharmaceuticals	97%
Drug Identification Numbers (DINs)	152

Distribution partnerships for wider market reach

Sunshine Biopharma has established distribution partnerships to enhance its market reach. These partnerships enable the company to access new regional markets and expand its footprint in the pharmaceutical sector. The increase in revenues from $16,412,586 in the nine months ended September 30, 2023, to $25,279,291 in the same period for 2024 is largely attributed to expanded marketing and sales efforts, including these strategic partnerships.

Moreover, the direct cost of generating these revenues was reported at $17,702,546, indicating an investment in sales and marketing strategies to support these distribution efforts.

Sunshine Biopharma, Inc. (SBFM) - Business Model: Customer Segments

Pharmacies and healthcare providers in Canada

Sunshine Biopharma primarily targets pharmacies and healthcare providers across Canada for the distribution of its pharmaceutical products. As of September 30, 2024, the company holds 152 Drug Identification Numbers (DINs) issued by Health Canada for its prescription drugs. The revenues from the Generic Pharmaceuticals segment represented approximately 97% of total revenues, highlighting the significance of this customer segment. The total revenue for the nine months ended September 30, 2024, was $25,279,291, up from $16,412,586 in the same period of 2023, reflecting a growth of 54%.

Patients seeking affordable generic medications

Patients constitute a crucial customer segment, particularly those seeking affordable generic medications. The Canadian government provides varying levels of reimbursement for prescription drugs, making affordability a key factor. The updated negotiated generic pricing from the pan-Canadian Pharmaceutical Alliance, effective October 1, 2023, indicates a strategic focus on maintaining competitive pricing for patients. This is essential as the company aims to capture a larger market share by offering cost-effective solutions to patients in need of generic medications.

Research institutions for innovative drug candidates

Research institutions represent another vital customer segment for Sunshine Biopharma. The company is engaged in the development of proprietary drugs, including Adva-27a, aimed at treating pancreatic cancer. This focus on innovative drug candidates positions the company to collaborate with research institutions looking for advanced pharmaceutical solutions. The financial commitment towards research and development highlights its importance, with R&D expenses amounting to $784,630 for the nine months ended September 30, 2024.

Customer Segment	Key Metrics	Revenue Contribution	Growth Rate
Pharmacies and healthcare providers	152 DINs	97% of total revenue	54% increase YoY
Patients seeking affordable medications	Government reimbursement programs	Significant but unspecified	N/A
Research institutions	Proprietary drugs in development	Part of R&D budget ($784,630)	N/A

Sunshine Biopharma, Inc. (SBFM) - Business Model: Cost Structure

Research and Development Expenses

For the nine months ended September 30, 2024, Sunshine Biopharma reported research and development (R&D) expenses of $784,630, compared to $1,039,502 during the same period in 2023. This indicates a decrease of $254,872 in R&D spending over the year.

Manufacturing and Operational Costs

The direct cost of sales for the nine months ended September 30, 2024, was $17,702,546, which accounted for approximately 70% of total revenues. This is an increase from $10,641,461 (65% of revenues) for the same period in 2023. The increase in manufacturing costs is attributed to greater retailer allowances aimed at expanding market access.

Marketing and Administrative Expenses

General and administrative expenses for the nine months ended September 30, 2024, totaled $11,351,144, up from $9,369,203 in the same period in 2023, marking an increase of $1,981,941. This rise is primarily due to increased costs in various categories including:

• Accounting: $565,172 (2024) vs. $301,381 (2023)
• Consulting: $576,481 (2024) vs. $745,850 (2023)
• Legal: $563,745 (2024) vs. $392,874 (2023)
• Marketing: $737,116 (2024) vs. $502,987 (2023)
• Salaries: $5,183,738 (2024) vs. $4,344,801 (2023)

In total, the general and administrative expenses reflect a significant investment in both operational capacity and market expansion efforts.

Expense Category	2024 Amount	2023 Amount	Change
Research and Development	$784,630	$1,039,502	($254,872)
Cost of Sales	$17,702,546	$10,641,461	$7,061,085
General and Administrative	$11,351,144	$9,369,203	$1,981,941

Sunshine Biopharma, Inc. (SBFM) - Business Model: Revenue Streams

Sales of Generic Pharmaceutical Products

During the nine months ended September 30, 2024, Sunshine Biopharma generated revenues of $25,279,291, a significant increase from $16,412,586 for the same period in 2023, marking a year-over-year growth of 54%. This growth is primarily attributed to expanded marketing and sales efforts by its subsidiary, Nora Pharma.

The direct costs associated with generating these revenues were $17,702,546, representing approximately 70% of total revenues, compared to $10,641,461 (or 65%) in the prior year. The resulting gross profit for this period was $7,576,745, up from $5,771,125 in 2023.

Period	Total Revenue	Cost of Sales	Gross Profit
9 Months Ending September 30, 2024	$25,279,291	$17,702,546	$7,576,745
9 Months Ending September 30, 2023	$16,412,586	$10,641,461	$5,771,125

Licensing Fees from Intellectual Property

Sunshine Biopharma owns several intellectual properties, including patents related to its proprietary drug candidates and generic pharmaceutical products. The company has secured 152 Drug Identification Numbers (DINs) issued by Health Canada for prescription drugs on the market, which were obtained through in-licenses or cross-licenses from international manufacturers. Additionally, Sunshine Biopharma holds four Natural Product Numbers (NPNs) for its over-the-counter (OTC) products, which further contribute to its licensing revenue.

These licensing agreements not only provide direct revenue streams but also enhance the company's market presence and product offerings, which can lead to increased sales of both prescription and OTC products.

Potential Revenues from New Drug Candidates in Development

Sunshine Biopharma is actively engaged in the development of new drug candidates, including Adva-27a, a small chemotherapy molecule targeting pancreatic cancer. The company has also filed for patents regarding a first-in-class PLpro inhibitor aimed at treating various coronavirus infections, which could open additional revenue streams upon successful development and commercialization.

The potential revenues from these new drug candidates are contingent upon successful clinical trials, regulatory approvals, and market acceptance, which can significantly impact the company's future financial performance.

Drug Candidate	Target Disease	Status
Adva-27a	Pancreatic Cancer	In Development
PLpro Inhibitor	Coronavirus Infections	In Development

Updated on 16 Nov 2024

Resources:

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