IPO details
Company intro
Cingulate is a clinical stage biopharmaceutical company focused on developing medicines that can help patients suffering from medical conditions with burdensome daily dosing regimens. The company’s initial efforts are focused on the treatment of Attention Deficit/Hyperactivity Disorder or ADHD.
Stimulants are the most commonly prescribed class of medications for ADHD, comprising 90% of all medication prescriptions for this condition in the US. Cingulate’s two proprietary first-line stimulant medications, CTx-1301 and CTx-1302, are being developed for the treatment of ADHD in children, adolescents and adults.
The company’s products are designed to take effect immediately, last for an entire day, eliminate the need for a booster dose, and reduce or eliminate rebound/crash symptoms. Cingulate plans to start Phase 3 trials for CTx-1301 in the fourth quarter of 2021 with results expected in late 2022, and a Phase 1/2 bioavailability study for CTx-1302 in early 2022.
Financials
Cingulate has not begun generating revenue from its products. In 2020, the company incurred a net loss of $7.1 million compared to a loss of $11.5 million in 2019. For the first six months of 2021, Cingulate posted a net loss of $2.7 million versus a loss of $4.8 million in the same period a year ago.
Market opportunity
In the US, approx. 6.4 million, or 11% of children and adolescents aged 4-17 have been diagnosed with ADHD. Of this, 80% receive treatment and 65% show clinical ADHD symptoms that persist into adulthood. Adult ADHD prevalence in the US is estimated at approx. 4.4% of the population.
The adult ADHD market is growing approx. 10% year-over-year. Total ADHD medication sales in the US have grown approx. 8% each year since 2010 with sales of all ADHD medications reaching around $18.3 billion in 2020.