C4X Discovery Holdings PLC (AIM:C4XD), a Manchester-based biotechnology company, is making significant strides in the field of immuno-inflammatory disease, executing a new and ‘evolutionary’ strategy.
The move forms part of the company’s strategy to focus on immuno-inflammatory pathways and to progress further along the development pathway, a core shift in its business model initiated last year.
In an exclusive interview, the company’s Chief Scientific Officer (CSO) Nick Ray and Chief Business Officer Bhavna Hunjan shed light on its use of small molecule oral therapies to treat inflammatory and autoimmune diseases.
In November 2022, C4XD secured a worldwide exclusive licence worth up to US$402 million for its NRF2 Activator programme, marking a significant milestone for the company, which is led by Chief Executive Clive Dix, who was the former Deputy Chair of the UK’s Vaccine Taskforce.
AstraZeneca will take the programme forward by further developing and commercialising oral medicines to treat inflammatory and chronic respiratory diseases.
C4XD’s researchers are experts in discovering small molecule-based medicines that can treat immuno-inflammatory diseases, developing them to inflection points with the potential for partnering with big pharmaceutical groups.
In August, the company entered into an asset purchase agreement with London Stock Exchange-listed pharmaceutical business Indivior.
For a nameplate price of US$20 million (£15.95 million), it shed its orexin-1 receptor antagonist, called C4X_3256 (INDV-2000), used to treat substance-use disorder, to the pharma group, streamlining its portfolio and providing non-dilutive funding for its newly focused strategy.
Financial milestones and partnerships
C4XD reached a financial milestone this week, securing an $11 million payment triggered under the partnership deal with AstraZeneca PLC (LSE:AZN).
The company has also received an initial payment of €7 million as well as the first milestone payment of €3 million from Sanofi SA (ADR) (NYSE:SNY) under a licensing deal in 2021 for its IL-17A Inhibitor therapeutics, used to treat inflammatory conditions, an example is psoriasis, Hunjan said. That agreement with Sanofi is worth up to €414 million.
Its existing contracts with AstraZeneca and Sanofi represent more than US$800 million of proceeds combined, Hunjan added, upon the completion of further milestones.
The company’s business lead said C4XD is focused on executing its partnership strategy to now put the company’s research further along the development pathway, emphasising that the business will prioritise in-house research.
She added that the company is now well capitalised and a particular focus for its research activities this year will be its α4β7 integrin inhibitor programme, which will progress possible treatments for inflammatory bowel disease (IBD).
Two of the company’s earlier-stage projects are expected to move into the lead optimisation phase by the end of the year.
Unique technology and future prospects
C4XD’s research takes a differentiated approach to drug discovery through its enhanced candidate molecule design and patient stratification capabilities.
Its unique technology, Conformetrix, allows the biotech company to look at the shape of molecules in solutions and see how they behave, a capability that sets them apart from others in the field, Ray explained.
The company uses nuclear magnetic resonance technology, alongside proprietary software, to determine the structure of molecules in situ, which enables its researchers to identify unique molecular structures.
For example, these molecules might behave differently when “floating about in physiological fluids”, he said. This differs from older techniques such as X-ray crystallography that effectively take a “snapshot” of a molecule frozen in time, Nick added.
He explained that the company’s software gives unique insights into the shape of molecules, including those with potential therapeutic properties, to inform a more accurate molecule design that is better suited for the intended therapeutic target.
C4XD can also apply its PatientSeek platform to analyse data to stratify (categorise and select) patients based on their genetics to ensure the right drug is given to the right patient.
This approach has the potential to develop more targeted treatments and tackle the challenges facing the industry where patients simply do not respond to a drug based on their genetics, as well as de-risk and accelerate clinical trials.
An evolutionary year
Hunjan said that C4XD is always in discussions with potential partners as they progress their programmes along the development pathway, and partnership is something that could eventually happen with its ongoing work on IBD and other inflammatory diseases.
The company is also planning to publish results from its analysis, using PatientSeek, of two phase three clinical trials for Parkinson’s with the Garvan Institute of Medical Research.
In the study, PatientSeek identified a sub-group of patients that did respond to the drugs. Hunjan said PatientSeek can also be applied to multiple treatment pathways within the field of immuno-inflammation.
With a background in discovery rather than clinical work, C4XD is a company that is not afraid to innovate and push boundaries.
Its strategic focus on inflammatory pathways, unique technology, and ambitious plans for the future make C4XD a company to watch in the biotechnology sector.