Percheron Therapeutics Ltd (ASX:PER, OTC:PERCF) last week outlined progress on its lead oncology asset HMBD-002, positioning the immunotherapy program to move into Phase II clinical testing following the completion of Phase I studies.
Chief executive officer Dr James Garner said the company had undergone a significant reset, both in terms of its asset base and internal structure, describing HMBD-002 as a completely new opportunity for Percheron Therapeutics Ltd. He noted that the drug had no scientific relationship to previous programs and targets a different disease pathway, making it uncorrelated with earlier setbacks.
Interview highlights
- Percheron Therapeutics Ltd has repositioned around its lead oncology asset HMBD-002
- HMBD-002 is an immunotherapy designed to activate the immune system rather than poison tumours
- The drug has successfully completed Phase I human trials
- Phase II clinical testing is the next major milestone and is of high interest to investors
- HMBD-002 targets VISTA, a difficult immune target with limited competition
- The company believes it is a global leader in VISTA-targeting therapies
- Phase I data showed the drug to be exceptionally safe
- The Phase II study is designed modularly to match available funding
- Cash of $4.5 million provides funding through most of 2026
- Management views the company as fundamentally reset with new people and infrastructure
Proactive: Welcome to Proactive Investors. I’m your host, Kerry Stevenson. Today I’m joined by Dr James Garner, Chief Executive Officer of Percheron Therapeutics Ltd. We’re talking biotech, cancer breakthroughs, and clinical trials. Percheron is a small-cap company with a challenging past, but now has a new opportunity. What is this new drug that you believe can give the company a new beginning?
Dr James Garner: Thanks, Kerry. It’s great to be here. Over the last six to eight months we’ve brought in a new drug called HMBD-002, which is a cancer drug. There are a couple of things that attracted us to it. First, it’s an immunotherapy or immuno-oncology drug. Instead of poisoning the tumour, it aims to turn the body’s immune system against the cancer. Second, the drug has already completed Phase I human trials, which means we’re now focused on moving into Phase II. That’s where things really get interesting for investors.
Proactive: Some shareholders may still be cautious given what happened previously when a drug failed. What would you say to them about this new program?
Dr James Garner: The most important thing to say is that this is a completely different drug. It has no scientific relationship to the previous asset, comes from a different source, works in a different way, and targets a different illness. Financially, the two programs are completely uncorrelated. The company itself has also changed significantly. Many people are new, and much of the company’s infrastructure is new. In many ways, Percheron Therapeutics Ltd should be viewed almost as a new business.
Proactive: You’ve recently released your quarterly update. What were the key highlights?
Dr James Garner: The main highlight is steady progress moving the drug forward. A lot of work is happening behind the scenes as we prepare for Phase II. In financial terms, we had a cash balance of $4.5 million, which equates to around 3.7 quarters of funding. We run lean, and that gives us funding through most of 2026. Importantly, our Phase II study is designed in a modular way, allowing us to scale based on available cash.
Proactive: Who are your competitors in this space, and why did you like this particular drug?
Dr James Garner: We are almost certainly the world leader in this specific space. HMBD-002 targets VISTA, which is part of the immune system. We probably have the most advanced VISTA-targeting drug in the world. It’s been a very difficult target because if you hit it too hard, you can cause toxicity by over-activating the immune system. Previous attempts, including by Johnson & Johnson, struggled with this. Our drug is built differently, on a different scaffold, to minimise toxicity, and so far in Phase I it appears exceptionally safe.
Proactive: What’s the timing for Phase II?
Dr James Garner: We’re aiming to start enrolling patients in the second half of the year. There will be progress markers along the way, including hiring CROs and securing ethics approvals, and we’ll keep investors informed as we move towards first patient dosing.
Proactive: We look forward to following those milestones. Thank you for joining us.
Dr James Garner: Thank you. It’s been a pleasure.