Two Phase III trial in IPF will be discontinued as well as a Phase II trial of a newer version of ziritaxestat, GLPG1690, in systemic sclerosis.
Ziritaxestat formed a part of a US$5 billion deal Galapagos and Gilead signed in 2019, with most of the deal value relating to filgotinib, which had been developed to treat rheumatoid arthritis, but failed to get approval in the US. To date Gilead had invested US$1.1 billion in Galapagos and holds a 26% stake.
Ziritaxestat is an autotaxin inhibitor (ATX). It had been observed in patients with lung fibrosis, that ATX levels increase in broncheoalveolar fluid. This then stimulates lysophosphatidic acid production, which then drives the production of pro-inflammatory signals and the promotion of fibroblast production. At this stage it is unclear whether the reason for the programs’ cessation was due to the target and the pathway, or the compounds.
This is the second ATX inhibitor to be cancelled, with Roche handing back BBT-877 to Bridge Biotherapeutics, in 2019, on the back of safety concerns.
The benefits to Adalta, according to CEO Tim Oldham, are that “there is now one fewer late stage competitor in the IPF pipeline and one less trial competing for IPF patients in Australia.”
Adalta is capitalised at $47 million and held cash of $8 million at the end of 2020 .
Bioshares recommendation: Speculative Buy Class A
Disclaimer:
Information contained in this newsletter is not a complete analysis of every material fact respecting any company, industry or security. The opinions and estimates herein expressed represent the current judgement of the publisher and are subject to change. Blake Industry and Market Analysis Pty Ltd (BIMA) and any of their associates, officers or staff may have interests in securities referred to herein (Corporations Law s.849). Details contained herein have been prepared for general circulation and do not have regard to any person’s or company’s investment objectives, financial situation and particular needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without consulting their investment adviser (Corporations Law s.851). The persons involved in or responsible for the preparation and publication of this report believe the information herein is accurate but no warranty of accuracy is given and persons seeking to rely on information provided herein should make their own independent enquiries. Details contained herein have been issued on the basis they are only for the particular person or company to whom they have been provided by Blake Industry and Market Analysis Pty Ltd. The Directors and/or associates declare interests in the following ASX Healthcare and Biotechnology sector securities: Analyst MP: 1AD, ACR, AVR, CGS, CUV, CYC, DXB, IMM, LBT, MX1, OPT, NEU, PAB, PXS,RNO,SOM. These interests can change at any time and are not additional recommendations. Holdings in stocks valued at less than $100 are not disclosed.
