Neffy's Nasal Breakthrough: ARS and ALK Partner to Transform Allergy Care

The partnership between ARS Pharmaceuticals (NASDAQ: ARSP) and ALK-Abelló A/S (CSE: ALKa) marks a pivotal moment in the race to improve treatment adherence for millions of allergy sufferers. By combining ALK’s pediatric sales expertise with ARS’s needle-free epinephrine nasal spray, neffy®, the两家 companies are positioning themselves to capture a significant slice of a market plagued by underutilized lifesaving medications.

The Co-Promotion Playbook: Scale Without Sacrifice

The four-year agreement strikes a strategic balance: ALK deploys 60 dedicated U.S. pediatric sales representatives to target 9,000 providers—nearly 55% of all community-prescribed epinephrine scripts—while ARS maintains full control over revenue and operations. This division of labor avoids the costly duplication of sales infrastructure while amplifying reach into a critical demographic.

The financial terms reveal a measured risk-reward structure. ARS pays quarterly base fees to ALK, with performance incentives escalating from 30% to 50% of excess net revenue as market share grows. This aligns ALK’s incentives with neffy’s success while capping upfront costs for ARS. For ALK, the deal strengthens its foothold in the U.S. pediatric market, a region underserved by its core immunotherapy products but critical for future food allergy treatments in development.

Market Dynamics: A $2 Billion Opportunity, Underutilized

The epinephrine market remains a paradox. With 20 million diagnosed allergy sufferers in the U.S., only 3.2 million filled prescriptions in 2023—and half of those patients fail to carry their auto-injectors consistently. This adherence gap is neffy’s opportunity. Its nasal spray design addresses two key barriers: the phobia of needles (affecting ~40% of pediatric patients) and the complexity of injector devices.

The co-promotion’s timing is equally strategic. A May 2025 direct-to-consumer campaign coincides with the launch of the 1 mg pediatric dose, while targeting back-to-school season—a peak period for allergy management conversations. ARS’s goal of 20,000 healthcare provider engagements by summer 2025 aims to make neffy the go-to option for pediatricians, who write 55% of all epinephrine prescriptions.

Risks and Realities: Navigating the Allergy Landscape

The deal isn’t without hurdles. Neffy’s side effects—nasal discomfort and systemic reactions—could deter adoption if reported widely. Competitors like Mylan’s EpiPen and Pfizer’s Adrenaclick still dominate, though their auto-injector designs face similar adherence issues. Regulatory shifts, such as formulary changes or pricing pressures, also loom.

Yet the math favors neffy. At a $2 billion U.S. market for epinephrine, even capturing 20% share would generate over $300 million annually—a figure ARS could reach if its 2025 sales ramp aligns with pediatrician targeting goals. The company’s Q3 2025 operating expense increase to $3 million quarterly is a small price to pay for a product with 90%+ gross margins.

Conclusion: A Win-Win With Legs

This partnership is a masterclass in leveraging complementary strengths. ARS gains a pediatric salesforce without diluting control, while ALK secures a beachhead in the U.S. allergy market. The numbers tell the story:

• Market Share Target: 9,000 pediatricians represent ~55% of prescriptions—neffy needs just 15% of this segment to double current sales.
• Financial Safeguards: ARS’s 2025 cash flow remains intact despite increased expenses, while ALK’s performance fees ensure upside without upfront risks.
• Patient Need: A 2023 study in JAMA Pediatrics found only 12% of eligible children carry epinephrine devices—neffy’s ease of use could double that figure.

For investors, the co-promotion reduces execution risk while amplifying growth potential. ARS’s stock, currently trading at 12x 2025E EBITDA, offers a compelling entry point as neffy’s market penetration accelerates. The real prize? A product poised to redefine allergy care—and deliver outsized returns for those willing to bet on it.