After several attempts to manufacture its antibodies, Patrys (PAB: $0.001) has decided to cease its internal drug development efforts and seek complementary assets that can be developed more cost-effectively.

The decision comes with board changes and CEO James Campbell to remain only in a non-executive director role. Directors Charmaine Gittleson and Pamela Klein have resigned from the board and have been replaced by Anton Uvarov and Peter Christie. Uvarov was instrumental in identifying the Blinklab asset. The company is also raising $0.3 million in the process.

With biologic compounds such as antibodies, there are substantial costs involved in developing the manufacturing processes. Patrys has faced multiple manufacturing setbacks, whereby the product specifications from third-party suppliers have not been met or did not have adequate clearance in terms of purity. Had it proceeded, it could have resulted in major downstream setbacks during clinical development after substantial investment had been made.

Patrys will continue to seek to out-license the full-sized antibody, PAT-DX3. Patrys should not be considered as a failure of processes, but rather confirms the challenges, long timelines, and costs associated with antibody drug development, and more specifically, the manufacturing process.

Date	Event
Jun' 2025	Company to out-license drug assets and focus on complementary assets that can be developed more 'cost effectively'
Oct' 2024	PAT-DX1 manufacturing met target specification but with narrow margin of purity acceptance. Company decides to focus on full-sized antibody, PAT-DX3
Jul' 2024	Inconsistency identified with specification testing for PAT-DX1
Dec' 2023	New manufacturing run to occur in Q1 2024
Mar' 2023	Manufacturer finds sporadic issue with cell line for PAT-DX1
Aug' 2022	PAT-DX1 meets all specifications in testing
Jul' 2022	Second manufacturing run for PAT-DX1 completed and awaiting testing
Feb' 2022	Cell line established for PAT-DX3
Jan' 2022	First manufacturing run of PAT-DX1 completed but low yields
Aug' 2021	Engineering run for PAT-DX1 delayed to Q4 2021 due to pandemic
Feb' 2021	PAT-DX1 cell line successfully established
Oct' 2018	Cell line development for PAT-DX1 starts with contract manufacturer

Bioshares recommendation: Speculative Hold Class C

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