Novel antibody company Patrys (PAB: $0.021) held its AGM this week. The presentation by its CEO James Campbell is worth reading closely.
For antibody development companies, the path to clinical trials is complex and time consuming because of the difficulty in the manufacture of biological drug candidates through a fermentation process. However, the company is edging closer to the clinic with the first clinical study due to commence in the second half of next year, following completion of GLP toxicology testing which is underway.
Patrys continues to cite the sway to earlier stage deals for biologics companies, with 59% of deals done at the preclinical stage, compared to only 39% for small molecule drug candidates. This is because once preclinical work is completed, the risk of success in the clinic is higher for biologics because of their specific, non-off-target binding characteristics.
Exelixis Deal Indicates Potential for Patrys
Campbell pointed to a deal signed earlier this month between Exelixis and Cybrexa Therapeutics. The deal gives Exelixis access to a peptide drug conjugate that simply targets lower pH conditions in the tumour microenvironment, using low pH insertion peptides, to disrupt DNA replication. The peptides are attached to small molecule cancer drugs.
By comparison, Patrys' compounds have an affinity for tumour cells because of the innate attraction to the DNA secreted by those cells. Its compounds also make their way into the cell nucleus, which is a highly unusual capability, disrupting the DNA repair process. The Cybrexa compound is in Phase I studies. The deal was worth US$703 million in total, with an upfront payment of US$60 million.
Also of interest from this year's AGM was the significant interest in the company's gene editing technology from third parties, with editing delivery studies due to be completed by mid-next year. As the Patrys compounds make their way into the cell nucleus, there is the potential to achieve DNA modification of cells.
Ex-CSL CMO Joins Board
Patrys announced a new chair at the AGM, with former CSL CMO Dr Charmaine Gittleson joining the board. This is a significant appointment.
Progress Over Last 12 Months
Patrys' achievements over the last year have included: the successful manufacture of its lead drug candidate, PAT-DX1; completion of non-GLP toxicology studies; confirmation that its larger antibody drug candidate can cross the blood-brain-barrier (it is easier to attach payments to the larger antibody); and preclinical data showing its compounds may also have an application in inhibiting tumour metastases spreading through the body.
Patrys finished September with $7.2 million in cash after raising $7.8 million late last year at $0.035 per share. The company's Phase I study next year, most likely in patients with triple negative breast cancer, will be a major milestone. There is also the potential in 2023 for the company to sign a significant partnering deal.
Patrys is capitalized at $43 million.
Bioshares recommendation: Speculative Buy Class B
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