What it does
Incanthera PLC (AQSE:INC) is a revenue-generating, UK-based, oncology therapeutics company focusing on drug discovery and development of targeted medicines for the treatment of cancer.
It is developing a pipeline of tumour-targeting drug delivery systems. The platform technology enables precise delivery of both new and existing highly potent drugs directly to tumours. This precision improves tumour selectivity and decreasing the side effects associated with traditional anti-cancer treatments.
It was spun-out in 2010 from the Institute of Cancer Therapeutics at the University of Bradford.
Its Sol cream has already gone through the proof of concept stage and Incanthera is looking for a partner within 12-18 months to help it through the product development and marketing stage.
Sol is a proprietary topical formulation designed to deliver an active agent into the skin that is known to prevent the formation of solar (actinic) keratosis and skin cancer: the technology uses a proprietary formulation and prodrug targeting technologies to deliver treatment specifically to the tumour.
How it is doing
Tim McCarthy, chairman of both companies, and several other directors and other employees of Incanthera subscribed for the remaining £100,000 at the same price.
McCarthy now has a 6.01% stake, while chief executive Simon Ward upped his stake to 4.11%.
Incanthera received positive data from a skin sensitisation study of its Sol sun cream, which demonstrated it is “non-irritant”.
Studies carried out in collaboration between XCellR8 and Cutest, a clinical research organisation with expertise in trials using topical applications, have demonstrated “very good correlation” between results using the methodology of this study and those obtained in clinical mildness studies.
Sol's "non-irritancy" was found to be comparable to baby sun protection products tested previously, Incanthera said, with Sol scoring better than products that would be defined as "very mild".
In a permeability study comparing Sol against four other products, Incanthera's formulation penetrated further into the skin and delivered the active anti-cancer ingredient deeper thereby boosting the chances of preventing a cancer forming.
The study, run by the University College of London, School of Pharmacy demonstrated that the difference was statistically significant and also confirmed results from an earlier test that Sol exceeded bioequivalence or efficacy when compared with oral dosing of the same active.
What the boss says: Simon Ward, chief executive
“Incanthera welcomes the completion of the subscription agreement by ImmuPharma and acknowledges their continued support and belief of the potential within our company and our pipeline."
“Similarly, I welcome the commitment of my fellow directors and management for their decisions to subscribe alongside our chairman, for additional shares, which underlines their dedication to the future success of the company for the benefit of both patients and shareholders.”
What the broker says
Research house Hardman says Incanthera offers distinct technology with the potential to attract the attention of the majors, especially given management’s strategy to out-license products early.
"The focus, initially, will be on Sol, a patent-protected, value-added, sun cream, which represents a relatively quick and low-risk cosmetics project.
"The current enterprise value (EV) suggests that there is good upside potential when comparing the company with a group of UK-listed peers working in the same field."