The Checkpoint Kinase 1 (CHK1) inhibitor programme which has the potential to combat cancer drug resistance, in collaboration with the Cancer Research Technology Pioneer Fund and BACIT, is making good progress as it moves through pre-clinical development and towards Phase 1 clinical trials. To date, lead series CHK1 inhibitors have shown potent efficacy in disease models of colon cancer and lung cancer in combination with other chemotherapies, in head and neck cancers in combination with radiotherapy, as well as neuroblastoma, acute myeloid leukemia and lymphoma when administered as a single agent. The Company's financial commitment for the programme for FY 2015 is potentially £797,500, depending on the progress made towards initiating first in human Phase 1 trials. However a full expenditure of this commitment is likely to indicate solid progression towards a Phase 1 trial submission. Should the safety profile prove to be an obstacle to human trials the expenditure is likely to be considerably less. It is hoped that a Clinical Trials Application (CTA) will be filed within the next twelve months. Also in pre-clinical development is the Aurora+FLT3 programme, and Sareum expects the generation of data required for clinical trial submissions to be substantially complete in 2015 and fully funded by the Hebei Medical University Biomedical Engineering Center. On TYK 2, Sareum and its partner SRI have demonstrated how a molecule (SAR-20437) reduced the levels of proinflammatory cytokines (signaling molecules) in the skin, believed to be responsible for disease pathology in conditions such as psoriasis. Lead optimisation continues and the programme seeks to expand to other indications namely inflammatory bowel disease, multiple sclerosis and rheumatoid arthritis.
Our forecasts have been amended to reflect the accounting treatment of CHK1 payments and assume that Sareum will be called upon to pay its full commitment of £0.8k during the period suggesting a cash shortfall of £0.5k. However there remains a possibility that this payment is not triggered or deferred into the following financial year. We are forecasting a loss before tax for FY2015 of £1.3m.
We have amended our sum of the parts risked equity valuation of the company to 1.64p per share (1.85p) reflecting the suspension of the FASN programme. However this still suggests potential upside of nearly 3x the current share price. With the possibility of two programmes progressing to the clinical stage in 2015, and the potential emergence of new candidates from Sareum’s SKIL platform, we see scope for further shareholder value creation.
After rereading the rns and Tim's recent interview (posted kindly by Hopkirk) that they intend to do a licensing deal prior to going into phase 1 and it's just dependant on a bit more data and the right deal! ( to me similar to the Array deal). This could happen any time and to me is likely to be soon but Tim reluctant to say so after his comments last year. This will then take away the need for further funding......., just my take
Hi 50sBoy - the statement "...rapidly progressing towards human trials" in itself deems there are still outstanding matters at pre-clinical stage, however, I view this all part of the process TM has stated in the past RNS's and things are progressing.......to what is the £/$ question
I think it goes without saying that there are disgruntled PI'S on this bb, but the reality is until we get to human trials TM has to keep on the scientific and in the meantime juggle the finance, as let's be honest no one will want SAR undersold........all imho
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