About 60% of biologic drug assets are transacted through a licensing/partnering deal at the preclinical stage, compared to 39% for small molecules. The average deal size for preclinical biologic deals is about twice that for small molecules.
Patrys has antibody assets that target cancer cells regardless of cell surface markers on the particular cancer type, as well as crossing the blood-brain-barrier. It inhibits the DNA repair processes in tumour cells. It does this by entering the cell nuclei, which is very rare.
Three of the poorly served cancers Patrys is looking at are glioblastoma, triple negative breast cancer and pancreatic cancer. The reason these are difficult to treat is because there are no cell surface markers to target. As mentioned, because the Patrys antibodies do not rely on cell surface markers, it has potential utility in these cancers as well.
In preclinical studies in these three indications, the Patrys antibody increases survival by between 41% - 47%. Studies have shown a 93% reduction in brain metastases. However, the interesting question for Campbell is whether the antibodies are killing the cancer cells or preventing metastases.
Patrys expects to be in Phase I studies around mid 2023 with is lead PAT-DX1 (a smaller version of its second drug candidate, PAT-DX3).
Looking back over the last two years, Patrys moved to two assets under development, raised around $20 million, with a market value that has increased from $15 million to $45 million. The funds raised have allowed the company to progress multiple applications of its technology, including the development of antibody drug candidates (where the Patrys antibodies can help deliver other therapeutics into cells or across the blood-brain-barrier). It has also significantly enriched its patent suite over this period to 12 patent families.
An area for Patrys to explore is the potential combination of its technology outside of the oncology space, to deliver other therapeutics, such as gene editing therapies and gene-modifying cell therapies, directly into the nucleus (using its surprisingly invasive technology). The aim for the next two years appears to be not just advancing its two leading programs which are funded into the clinic, but to expand the assets under development, including with partners bringing in non-dilutive funding.
Bioshares recommendation: Speculative Buy Class B
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