RE: Astra Zeneca acquired fusion20 Mar 2024 22:31
Just to add (sorry, have previously posted some of this) regarding the challenges of RLT (RadioLigand Therapy). The radioisotopes used are not inert – you can’t turn radioactivity off (unlike AVA6000 where Doxorubicin is rendered inert until FAP triggered cleavage at the TME), so targeting is critical. Not to mention the supply-chain challenges of radioisotopes (like, it might help to have a nuclear waste facility or a small CERN next door).
Lily (Point) and Novartis favour 177Lu and 225Ac (maybe 161Tb). 177Lu is produced by Neutron bombardment of 176Lu, or 177Yb - which then decays to 177Lu. 177Lu has a half-life of 6.6 days, so not long to manufacture the Radioligand. 177Lu decays via beta emission (3 energy levels) and gamma (1 energy level). The beta decay is the treatment.
Most 225Ac came from the Oak Ridge National Laboratory from slowly decaying Thorium – but this source is running out. However, you can always batter 232Th with high-energy protons – just need that accelerator next door. 225Ac has a 10-day half-life and decays via alpha emission (high energy, but very short distance, so needs precise targeting). Could go on, but getting late.
So what did Lily get for their money (Point Biopharma – acquired for ~$1.4bn (~£1.1bn))?
PNT2002 – RLT PSMA target, phase 3, trial met end-point, but results not up to expectations.
PNT2003 – RLT SSTR target, phase 3, FDA accepted abbreviated new drug application (ANDA), ‘frequent grade 3 / 4 AEs’, only 180 days exclusivity.
PNT2004 – RLT FAP-α target, phase 1 (177Lu), pre-clinical (225Ac), PNT2001 – RLT PSMA target, pre-clinical, CanSEEK™ - (i.e. pre|CISION™ licenced for RLT), status unknown.
Point had a strong balance sheet arising from a licensing deal with Lantheus at end-2022 involving PNT2002 and PNT2003 (so presumably Lantheus continue with a significant stake?).
Point had no product sales.
Avacta – market value (on 351m shares @ 53p) = £186m
AVA6000 - FAP-α activated doxorubicin, phase 1, going well so far, planning for dose escalation / phase 2. Presenting results at AACR 2024 April 9.
AVA3996 - FAP-α activated proteasome inhibitor, planning for FDA IND and phase 1.
AVA028/032 – PD-L1 Affimer, research / pre-clinical.
AFX-001 – Immunomodulatory Affimer being progressed by AffyXell (JV Daewoong) to FDA IND.
Avacta now have cash funding into 2026, however there remains an outsanding £38.25m of CLN debt.
Avacta have product sales from the Dx div (Launch and Coris) expected to be EBITDA positive in H2/2024 and cash positive in 2025.
Qualitative assessment – Personally (DYOR) I think that Avacta’s pipeline / technology is much more valuable. RLT difficult (major supply-chain issues), whereas pre|CISION™ is a true ‘platfom’ technology. I would (‘qualitatively’) judge Avacta Tx value being at least, likely more than, that of the Point / Lily acquisition deal.
GLA
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