Chimeric Therapeutics Ltd (ASX:CHM) has had its valuation raised from $1.04 per share or $346 million to $1.19 per share or $396 million in a broker note from Diamond Equity Research that incorporates the option to license the CORE-NK platform, contingent on successful execution by the company.
The note said the increase in valuation was largely attributed to the acquisition of the option to license the CORE-NK cell platform targeting various solid tumours and blood cancers.
Chimeric is expected to add 3 CAR-NK cell therapies taking its current pipeline to seven novel cell therapies.
The lead NK-cell therapy has recently completed its phase 1 trial, with results expected by 2022.
Foundation for CAR NK cell therapy
Chimeric will extend its existing pipeline of antigen receptors (CLTX AND CDH17) based immunotherapies towards NK cells as well.
The company is expected to leverage the clinically validated NK cell platform to develop CLTX CAR-NK, CDH17 CAR-NK, CHM 3301 (target undisclosed) and CHM 0301 a next-generation CORE-NK platform targeting blood cancer combination therapies.
Currently, 19 trials investigating CAR-NK cells for the treatment of hematological malignancies and the treatment of solid tumours are underway.
Most of the CAR-NK cell trials are conducted in China (15), while three trials are underway in the US and one in Germany.
In addition, a few trials are currently addressing CAR-NK/T cell products (two in the US and one in China) as well as CAR-modified cytokine-induced killer cells (one trial in Italy).
Encouraging interim Phase 1 results
The recent interim phase 1 trial results for its rGBM immunotherapy showed promising safety data and a disease control rate of 75% in three out of four patients treated.
There was no dose-limiting toxicity aside from one subject patient, who developed cerebral edema.
The initial trial results confirm the correlation between the MMP-2 marker and CLTX binding supporting the rationale to explore MMP-2 as a corrective marker.
“We see this early-stage data as encouraging as the company progresses further with its phase 1 trial using higher dose levels and dual-routes of administration,” the broker note added.
Huge market opportunity
The total incidence of cancer targeted by CHM0201: CORE-NK platform is over 300,000 (including blood cancers and solid tumours), providing a huge market opportunity.
The CORE-NK platform provides the benefit of an allogeneic setting drastically reducing the per-patient per infusion cost compared to currently approved CAR-T cell therapy.
While this licensing deal might prove transformational for the company, the broker has assumed a commercialization success rate of 15%, given that the option is yet to be exercised and the major focus for the company seems to be the CAR-NK therapies with planned Phase 1 trial expected by 2023.