Nuformix PLC (LON:NFX), the pharmaceutical development company and drug re-purposing specialist, announced this morning that it has conditionally raised £1.565mln before expenses by way of a placing of new ordinary shares at 2p per share. Carried here is a company-supplied question and answer article with insights from chief executive, Dr Anne Brindley.
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Q: Anne this is obviously good news for Nuformix, can you give us a summary of what’s been announced and what the funds will be used for?
A: Yes thank you. Nuformix has an early-stage pipeline with potential for significant value creation through early licensing opportunities. We are very pleased to have conditionally raised just over £1.5mln in an oversubscribed placing which has strengthened our financial position and, in particular, means we can drive forward the three assets in our portfolio. As the placing is conditional upon shareholder approval, a general meeting will be held on March 29.
Q: Anne, could you give some background on the company and the assets you’ve just mentioned?
A: Nuformix is a pharmaceutical development company targeting unmet medical needs in fibrosis and oncology via drug repurposing. The company aims to use its expertise in discovering, developing and patenting novel drug forms, with improved physical properties, to develop new products in new indications that are, importantly, differentiated from the original (by way of dosage, delivery route or presentation), thus creating new and attractive commercial opportunities. Nuformix sees a clear opportunity to extract value from its pipeline of assets for fibrosis and oncology, therapy areas with high unmet medical needs and significant commercial potential.
Nuformix has an early-stage pipeline of preclinical and phase I-ready assets with potential for significant value and early licensing opportunities. The company’s business model is to take its assets to key-value inflexion points before partnering or licensing.
Nuformix has a pipeline of three assets:
NXP002 (inhaled tranilast) for idiopathic pulmonary fibrosis (IPF)
NXP002 is the company’s pre-clinical lead asset and a potential novel inhaled treatment for IPF. It is a repurposed, new form of the drug tranilast, to be delivered in an inhaled formulation. IPF is a devastating lung disease associated with a higher mortality rate than many cancers and where there is a need for additional treatment options. Tranilast has a long history of safe use as an oral drug for allergies but there is evidence that supports its potential in fibrosis, including IPF. NXP002 is differentiated as it is a new form of tranilast and will be formulated for delivery direct to the lungs by inhalation, a new route of administration for this drug. Delivering drugs by the inhalation route is a well-known strategy for the treatment of lung diseases to yield greater efficacy and reduce systemic side-effects compared to oral treatment. Nuformix has filed two patent applications on new forms of tranilast, one of which is granted and the other is undergoing examination.
NXP001 (aprepitant) an oncology candidate
NXP001 is a proprietary new form of the drug aprepitant that is currently marketed as a product in the oncology supportive care setting. A disadvantage of aprepitant is that its sub-optimal properties necessitate a complex formulation. The company discovered new forms of aprepitant (NXP001) with improved properties and it has granted patents on its new forms. Literature data suggest that aprepitant could have benefits in oncology (that is, beyond the currently marketed indications).
On 23 September last year, Nuformix granted Oxilio, a private pharmaceutical development company, an option to licence NXP001 globally for repurposing in oncology. Under the agreement, Oxilio has an exclusive option period that ends on March 23. Should Oxilio exercise the option and a global licence deal be negotiated, Nuformix will licence its patent estate and know-how on NXP001 in return for an upfront payment, development milestones and a royalty on net sales, capped at £2mln per annum. However, if the option is not exercised, Nuformix will pursue additional business development opportunities for NXP001 in oncology with the potential to generate value from this asset.
NXP004 (undisclosed drug) an oncology candidate
The company has discovered novel forms of an undisclosed marketed oncology drug that has significant sales (more than £1bn in 2020) and is showing further growth. The company has filed one patent application on these novel forms and is currently conducting further research on other new forms and their properties. Should further research warrant it, the company may file an additional patent application. In addition, the company is evaluating the potential advantages of the new forms that have been discovered. If the patents on these new forms are granted there is potential for patent expiry to extend to 2040/2041. While there is literature data and preliminary preclinical data generated by the company providing evidence for this drug’s potential activity in fibrosis, it is the company’s strategy that in order to derive the most value from the NXP004 asset, the opportunities in oncology should be exploited as a priority.
Should the further research be positive, there are two potential options for licensing the company’s IP to generate value from NXP004:
- Licence to the originator of the marketed drug to potentially extend its patent protection, thus potentially adding significant value for the originator; or
- Licence to generic companies to potentially allow commercialisation of a generic alternative to the marketed drug
Q: What specifically will you be doing with the proceeds of the raise?
A: Nuformix will progress the preclinical development plan for our lead asset (NXP002) to the next value inflexion point. This is work we deem necessary to increase the value of this asset and render it more attractive to licensing partners.
In addition, we await the outcome of Oxilio’s option to license one of our other assets, NXP001. However, as mentioned, should Oxilio not exercise the option to license NXP001 in oncology some of the proceeds of the Placing would be used to pursue additional business development opportunities for NXP001 in oncology.
The funds would also enable the company to perform further research on NXP004 to supplement existing data. The outcome of this research and potential further patent application filing on NXP004, if successful, would provide an IP licensing opportunity for the Company
The proceeds are also expected to be used by the company to provide additional working capital.
Q: So what are the key messages from today and outlook for the company?
A: The strategy of the company is to optimise value from its existing assets while maintaining tight control of costs. The company intends to achieve this by:
- Progressing further preclinical work on its lead asset, NXP002, to deliver a more robust data package to potentially increase this asset’s value and attractiveness to partners/licensees. Should the data be positive, this would enhance the company’s business development and facilitate further licensing or partnering activities
- Pursuing licensing of NXP001; and
- Conducting further research/patent application filing on NXP004 to provide a potential IP licensing opportunity
The company plans to conduct business development / licensing activities for all three assets using a structured and data-driven approach, with the goal of seeking global licensing deals.
The company will also continue to seek ongoing non-dilutive grant funding for its early-stage assets that, if successful, will enable further investment in the company’s pipeline to accelerate development and ultimately the potential for licensing opportunities.