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And the great thing is these are private companies that will pay, not the government who seem to be able to decide if they put or don't pay even though they are contractually obliged to pay :)
Yes, just imagine this becomes the standard go to platform for delivery of pro drugs to the tumour site. That would be some leverage on all the work going on in the oncology world.
'We will pay during 2021 an upfront payment of $1.0 million for the initial license fee, $250,000 of which has already been paid and the remaining payments are due upon preclinical milestones. '
Note they say 'We will pay during 2021'...not just 'an upfront payment will be made...' with no timescale. Sounds to me they are pretty confident in the preclinical milestone outcomes.
Also note the ongoing different income streams this generates...Oh! I just love it when income is generated by others and you just sit back and let the cheques roll in...
Do we have any idea on the timeline to receive the larger milestone payments?
This is a really interesting bit of news and cannot be deramped. Probably the most exciting post I have read on LSE / Avacta.
Thank you very much for your time and trouble - you have made my Sunday. This and the move to lateral flows must mean good times are close. Thank you Avacta staff for your hard work and good luck fellow believers and have a wonderful Sunday .
RNS " Under the terms of the agreement, Avacta will receive an upfront fee and development milestones for the first radiopharmaceutical prodrug totalling $9.5 million. Avacta will also receive milestone payments for subsequent radiopharmaceutical prodrugs of up to $8 million each, a royalty on sales of FAP-activated radiopharmaceuticals by POINT and a percentage of any sublicensing income received by POINT.2"
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"Prospectus Targeting Technology
In December 2020, we entered into an agreement with AVACTA (“AVACTA Agreement”). Under the AVACTA Agreement, we became a sublicensee of AVACTA’s license for using the intellectual property of developing and marketing radiopharmaceutical agents. Under this agreement, we obtained an exclusive license of AVACTA’s patent rights to use, develop, manufacture and commercialize any FAP-activated PSMA targeted radiopharmaceutical and a non-exclusive license of AVACTA’s patent rights for other FAP-activated radiopharmaceuticals arising from the licensed technology.
We will pay during 2021 an upfront payment of $1.0 million for the initial license fee, $250,000 of which has already been paid and the remaining payments are due upon preclinical milestones. We are further obligated to make aggregate milestone payments to AVACTA of up to $4,500,000, upon the achievement of specified development milestones for our first product and up to $3,000,000 each for any license products upon reaching the specified development milestone. In addition, we are obligated to pay a milestone payment of $5,000,000 for each product for the regulatory milestone of being approved in specified territories. There is also an additional single digit percentage fee payable to AVACTA for monetary payments arising from a grant of a sublicense to a sublicensee or in the form of other benefits. We are also obligated to pay a single digit percentage royalty (subject to a reduction on certain conditions) related to the annual net sales by us, our affiliates or our sublicensees for each licensed product or license process and a single digit percentage royalty on a specified product arising out of the patents. The royalty rate will be reduced by 50% for net sales occurring in the United States if there is no valid claim at the time of sale. There is also an additional single digit percentage fee payable to AVACTA for monetary payments arising from a grant of a sublicense to a sublicensee or in the form of other benefits. We are responsible for all costs and expenses incurred related to the development, manufacture, regulatory approval and commercialization of all licensed products. In January 2021, we paid $250,000 of the initial license fee."
Gmcc...that's certainly a tasty deal with some great milestones income numbers..(licencing and royalty) just love the ones end with an 'm'....
I wonder how typical this licencing deal is to other deals we are making.
As that info has now been put in the public domain, Avacta can't claim confidentiality on those number now.
Might be worth posting it up here so others who missed it can see the value of these deals...
Did ask PB & Avacta to clarify whether PNT2004 was using Avacta technology no reply as yet but links below seem to indicate not the case sorry @ CautiousOptimist .
Great detail in the Prospectus check out the royalties for Avacta page 98
https://www.pointbiopharma.com/products/tme-technology
https://ih.advfn.com/stock-market/NASDAQ/point-biopharma-global-PNT/stock-news/85770610/prospectus-filed-pursuant-to-rule-424b3-424b3#TM2123357-7_424B3_HTM_TUOP
Pages 88 onwards
"Preclinical Data and Next Steps
We are currently evaluating development plans to advance our tumor microenvironment targeting technology prodrug platform, and plan to assess its application to PMSA targeting ligands. Avacta Life Sciences has recently received approval from the Medicines and Healthcare Products Regulatory Agency (MHRA) for its Clinical Trial Authorisation (CTA) in the UK for a Phase 1 study of its lead pre | CISIONTM prodrug, AVA6000 pro-doxorubicin, and we eagerly await the clinical data from their program as well as it may help us inform our own development plans."
PB also waiting in anticipation for AVA6000 .
Great stuff, and this is where the long term value is for avacta. It's not a covid stock as labelled by some
Cautious / GMCC / Poirot / PAH00
Thank you very much for your research and time spent then sharing information - much appreciated
LLP, see slide 16:
https://journey.ct.events/view/f6338e19-ea31-468f-bace-6c6fe219f8eb
“Point’s CanSEEK(TM) has been sub-licensed from both Bach Biosciences and Avacta Life Sciences, who has branded the technology as Pre|Cision(TM) (an Avacta trademark).”
Great positive news, as somebody has said this is a win win for Avacta. Thanks for posting
GLA
I think precision may well replace Point's proprietary canSEEK delivery tech for their Radioligands. Not necessarily competing with proDox, rather adding to the range of tumour treatments. Potential win win, treat more cancer, more license revenue. Synergy between co.'s very interesting as well.
GLA
So the Precision tech is working in pre-clinical models with AVA6000, AVA3996, 2 TMAC’s and Points Canseek. I appreciate these are animal models and nothing is guaranteed, but when such amazing results are repeated over so many programs, it surely increases the chances of success in humans dramatically? This is what is attracting all this top talent to Avacta, which lets be honest is still early stage. I can’t see a situation where Avacta can remain independent if AVA6000 if successful, far too much potential for large pharma to turn a blind eye.
Agreed, PAH00, and the presentation shows they are going at it “full balls”. They evidently see this as the shiny new crown jewel in their pipeline.
Nice work CO.
AS has said about affimers (and no doubt the same applies to precision) that he does not mind licensing them to competitors.
These are technologies the world needs to hear about!
CO thanks for sharing, great digging and research very much appreciated
Maltby - this isn’t Affimers mate! This is PreCision, the other platform. Personally I hope AVA6k beats this to approval for use in patients as well, because it’s a competing therapy now, addressing probably the exact same use cases.
One advantage on that front is that Doxorubicin (in AVA6k) is an approved standard-of-care therapy, and we “just” need to prove that the new delivery system has a clinical benefit and is at least as safe. Point’s offering is (I believe) a novel therapy in a newer treatment area with only 3 radioligands approved to date, so may have more hoops to jump through.
We also have 1 year’s headstart.
But as I say, at least we have royalties to gain if PNT2004 does well. And ultimately, success in either (or both) is good for cancer patients, which is the most important thing.
I am 99% sure that PNT2004 is the first clinical candidate to come from the CanSEEK/TME-targeting platform. In the presentation, the CEO clearly states that it uses the tech licensed from Tufts. It targets FAP-alpha.
I think the TME is listed as a separate project in the business update just to denote that it is a platform, with other drug candidates expected to emerge from it in time.
Away from the mindless drivel we have again been subjected to come 2 pieces of news today from Point and DVRG again showing how affimers can be effectively used and the potential revenue Avct could earn once these trials have been successfully completed
Hi CO Currently listed as two projects (maybe combine ) - anyway good thing they confirm FAP is highly expressed in solid tumours which hopefully augurs well for AVA6000.
https://www.pointbiopharma.com/press-releases/point-biopharma-reports-second-quarter-2021-financial-results-and-provides-business-update
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PNT2004: PNT2004 is a FAP-a targeted radioligand in preclinical development for the treatment of solid tumors. FAP-a is highly expressed on a wide range of solid tumors but absent in all other healthy tissues, offering the potential for a tumor agnostic therapy that could enable the precise treatment of a variety of solid tumors independent of tissue origin. POINT is continuing preclinical studies and expects to initiate clinical development for this program in 2022.
Tumor Microenvironment (TME) Targeting Technology: POINT’s FAP-a activated prodrug technology attempts to limit a ligand’s ability to bind with receptors on healthy cells, to prevent off-target delivery and improve therapeutic index. Currently in the pre-clinical stage, POINT’s TME Targeting Technology is sub-licensed from Avacta, who has named it pre | CISION™ (an Avacta trademark).
Gmcc, good to challenge to make sure. I just went back to check again, and at c.10min on slide 16 in this investor presentation, in the small print it says:
“Point’s CanSEEK(TM) has been sub-licensed from both Bach Biosciences and Avacta Life Sciences, who has branded the technology as Pre|Cision(TM) (an Avacta trademark).
So in this case, it very much “is us”!
Maybe the CanSEEK application has a subtly different chemistry, eg one that doesn’t involve cleavage of the substrate in the presence of FAPa, and therefore Billy P reckoned he could license it separately?
I’m thinking with a radioligand you only need to get the radioisotopes to stick around near the tumour, and they can do that whether they stay bound or cleaved.
Anyone with more biochem knowledge than I have want to weigh in?
Hi CO Think PB are using different FAP versions from Tufts . ( be good if my understanding not correct )
Avacta " Tumor Microenvironment (TME) Targeting Technology: POINT’s FAP-a activated prodrug technology attempts to limit a ligand’s ability to bind with receptors on healthy cells, to prevent off-target delivery and improve therapeutic index. Currently in the pre-clinical stage, POINT’s TME Targeting Technology is sub-licensed from Avacta, who has named it pre | CISION™ (an Avacta trademark)."
(2/2)
This assumption stated, my notes on the 13 Sep investor presentation:
- Pipeline discussed from c.09:40, PNT2004 from c.12:00
- Point are very well funded, with $274m in the bank as of June 2021, and have their own vertically integrated radioligand manufacturing facilities.
- Despite having two drugs at Phase 3, the CEO sounded most excited about the commercial opportunity for PNT2004, which he described as having a “pan-cancer” application, as opposed to their Phase 3 drugs which are targeted at specific indications.
- Licensed FAPa targeting technology described as “best-in-class”
- PNT2004 pre-clinical studies had extremely encouraging results, with 100% survival rates at 80 days.
- As a result they are ramping up activity to get it to clinic, with IND expected Q1 2022, and entering Phase I clinical trials targeted in 2022.
- One other drug on the CanSEEK platform is in the pipeline already.
Thoughts:
- They are seriously excited about their “CanSEEK platform”, which as I’ve said I take to be the one sub-licensed from Avacta, and they are gunning to trial it and commercialise it as quickly as possible.
- Their cash pile and manufacturing capability make it sound like they have a chance to launch the drugs directly rather than sub-license, which I think is good for Avacta’s potential cut.
- The first drug on the platform has milestone payments up to $9.5m to Avacta, and each additional drug on the platform that goes to development will lead to up to $8m in milestone payments to Avacta, plus royalties on anything commercialised.
- They are now a competitor in the FAPa-targeting space, who share the best technology with us, but at least if they succeed, we stand to gain a revenue stream from the royalties!