TIDMETX
RNS Number : 8126L
e-Therapeutics plc
24 July 2017
E-THERAPEUTICS PLC
("e-Therapeutics" or the "Company")
E-Therapeutics announces outcome of Strategic Review AND FUTURE
PLANS
Oxford, UK, 24 July 2017, e-Therapeutics plc (AIM: ETX): Upon
the completion of Ray Barlow's first three months as CEO of
e-Therapeutics, the Company outlines below the conclusion of the
strategic review for its investors and other stakeholders.
-- A systematic review of the technology confirms the novelty,
utility and productivity of e-Therapeutics' Network-Driven Drug
Discovery (NDD) platform
-- Internal discovery efforts will focus on the Company's two
immuno-oncology programmes, and all other programmes will be used
for platform validation purposes and/or immediate out-licensing
-- Investment in the NDD platform will continue to develop its
functionality and capabilities, including in genomics and
artificial intelligence/machine learning
-- Costs continue to be managed prudently, and the Company
confirms receipt of GBP2.8m tax credit
-- The prime focus will be on business development, external collaboration and partnership
Ray Barlow, CEO of e-Therapeutics, said:
"Based on a detailed, systematic review of the business and its
technologies, we are firmly of the view that we have created a
unique and sophisticated computer-based drug discovery platform
which is significantly more rapid and productive than other
approaches available to the industry.
"Our network-driven view of biology and disease is gaining more
and more attention in literature and the industry. Furthermore,
results we have generated show that our approach has the potential
to discover new and better drugs with potentially novel mechanisms
of action (MoAs).
"While exercising keen cost control, we will continue to invest
in the development of the platform and also carefully deploy our
own resources to progress selected internal programmes. Our
internal discovery efforts will now focus on our two novel, small
molecule, immuno-oncology programmes in checkpoint signalling
modulation and tryptophan breakdown (catabolism).
"Our business model is directed to external collaboration and
partnership, including the out-licensing of our assets at a
pre-clinical stage. We will now take our Hedgehog signalling
modulation programme out to the industry.
"We can apply our approach to a range of complex diseases, and
hope that our platform will be of interest to a range of
traditional biopharmaceutical companies as well as to a new
generation of companies looking to disrupt drug R&D. We believe
there is potential to enter into several different types of
collaborative partnerships and agreements to create sustainable
mutual value."
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
ADDITIONAL INFORMATION & BACKGROUND ON THE STRATEGIC
REVIEW
A 'root and branch' review was undertaken by the CEO, including
a panel composed of leading commercial and scientific experts
working for (or with background in) big pharma (AstraZeneca, Pfizer
and Merck & Co.) and successful biotechs (Piramed, Mission
Therapeutics, BenevolentAI).
The various areas of the review with further information are
summarised below:
Review confirms utility and productivity of e-Therapeutics'
network-driven drug discovery (NDD) platform in creating new and
potentially better drugs
-- Confirmation that e-Therapeutics' approach is unique and
productive, and should have advantages in terms of time, cost,
novelty and quality over other approaches to small molecule drug
discovery
-- NDD approach has now been used to identify small molecule
hits in 12 discovery programmes in diverse areas of biology,
including oncology, immunology and neurodegeneration
-- The process is rapid: identifying drug-like molecules takes
nine months or less from original concept to initial hits. This
compares to 24 months or more for standard approaches
-- The process is highly productive: potent, selective and novel
drug-like molecules identified at a level of productivity several
orders of magnitude higher than typical high throughput or
phenotypic approaches
-- The approach can be used to identify potentially novel
mechanisms of action (MoAs) and first-in-class candidates
Review confirms market dynamics favourable towards
e-Therapeutics' approach, model and business plan - pharma industry
is focusing more on a network view of genomics and disease
-- There is a growing interest by the industry in focusing drug
R&D on a network view of biology and disease, as described in a
recent BioCentury Innovations article (see link: HERE)
-- e-Therapeutics' drug Discovery Engine is a unique way to
approach this increasingly important area of drug discovery:
o A combination of large-scale, proprietary databases and a
suite of powerful computational tools that employ data mining,
machine learning, artificial intelligence, optimisation, and
network analysis
Review confirms two immuno-oncology programmes should be the
focus for incremental investment
-- Confirmation follows a systematic assessment of the status of
all programmes, including data generated, investment required,
competitive landscape and potential of programme to meet unmet
clinical and commercial need
-- Checkpoint signalling modulation and tryptophan breakdown
(catabolism) programmes continues to be the focus for further
internal investment. These programmes address gaps in available
treatments and have potential to provide novel, first-in-class
drugs
-- Actions for other programmes:
o Hedgehog signalling modulation and anti-influenza programmes
validate the NDD approach and will be taken out to the industry as
potential out-license opportunities
o TNF alpha suppression and Telomerase projects underpin the
scientific foundation of the NDD approach and data will be
submitted to scientific and industry publications
Review confirms utility of approach which enables e-Therapeutics
to work in areas of biology with high unmet clinical and commercial
need
-- e-Therapeutics now has significant expertise in the
application of its specialised approach to network biology to a
broad range of complex diseases
-- New network feasibility projects in triple negative breast
cancer, tumour microenvironment and other complex disease like
neurodegeneration and fibrosis
-- Intention to approach industry to work with them on using NDD
on disease areas of clinical and commercial interest
Positive outcomes generated from programmes to date, encourage
further investment in the platform
-- Review confirms e-Therapeutics has created a unique and
sophisticated computer-based drug discovery platform which is
significantly more rapid and productive than other approaches
available to the industry
-- Plan to continue:
o Refinement of current, user-friendly interface
o Regulatory network construction and analysis ("drugging the
undruggable")
o Application of networks to personalised medicine and disease
segmentation based on genomics
-- Expansion of the use of artificial intelligence (AI)/machine
learning for data augmentation
-- Work on elucidating novel MoAs via a network-driven
approach
Cost control will be applied to maintain cash resources
-- A thorough financial review of all elements has been
undertaken
-- The number of active, self-funded discovery programmes
reduced from six to two, with capacity to initiate new projects
-- External funding sought for other programmes
Focus on business development
-- Prime focus of the business is now firmly on business
development activities and on external validation of the platform
and programmes
o Active marketing of Hedgehog and anti-influenza programmes
o Partners also sought for new NDD projects utilizing the drug
discovery platform
-- Business rebranded and new website and marketing material
created
-- Sponsorship of AI Pharma Innovation Summit (July 2017) in
Boston to showcase
e-Therapeutics' technologies to Chief Technology Officers (CTOs)
and heads of informatics of major industry players
Further points of note
-- R&D tax credit of GBP2.8m received in late June 2017
-- Full financial update as part of our half-year announcement,
scheduled for 26 September 2017
Further detail on programmes
Checkpoint signalling modulation
The aim of this programme is to create novel, small molecule
disruptors of checkpoint signalling that can increase the
anti-tumour activity of immune cells and directly overcome T-cell
anergy and reverse T-cell exhaustion.
e-Therapeutics has identified compounds that are active in a
panel of challenging orthogonal assays. The Company also appears to
have novel MoA (not A2A or CTLA-4 or PD-1 antagonist). Whilst
relatively early, this programme is in a rapidly developing space
with high industry interest. The Company will continue to invest in
this programme to build on the exciting and encouraging data it has
generated to date.
Tryptophan Catabolism (degradation)
The aim of this programme is to create novel, small molecule
agents that can reduce the catabolism (degradation) of tryptophan
which, in turn, should prevent the suppression of T-cell responses
in cancers as a monotherapy or in combination.
This programme has been highly productive, and the team has
identified novel, picomolar potent, drug-like compounds with
activity greater than agents currently in the clinic, such as
epacadostat (Incyte), indoximod (New Link Genetics) and BMS-986205
(BMS/Flexus). In addition, data suggests that a novel MoA (not IDO
or TDO inhibitors) has been found which will be explored
further.
Hedgehog signalling modulation
The aim of this programme is to create novel, potent and
selective Hedgehog pathway modulators with reduced tendency to
induce SMO resistance and activity against tumours resistant to the
existing agents vismodegib and sonidegib.
This programme has been a good validation of e-Therapeutics'
approach. The Company has identified molecules with single-digit
nanomolar potency in cellular assays, some of which have no (or
some limited) binding to SMO, superior efficacy in
vismodegib-resistant cells and activity in a mouse xenograft model,
equivalent or superior to the established agents. The Company will
now take this programme out to the industry to see the level of
interest as an out-licensed asset.
-Ends-
For further information, please contact:
e-Therapeutics plc Tel: +44 (0) 1993
Ray Barlow, CEO 883 125
Steve Medlicott, Finance www.etherapeutics.co.uk
Director
Numis Securities Limited Tel: +44 (0) 207
Michael Meade / Freddie 260 1000
Barnfield www.numis.com
(Corporate Finance)
James Black (Corporate
Broking)
Instinctif Partners Tel: +44 (0) 207
Melanie Toyne Sewell/Alex 457 2020
Shaw Email: e-therapeutics@instinctif.com
Notes to Editors
About e-Therapeutics plc
e-Therapeutics is an Oxford-based company with a unique and
powerful computer-based drug discovery platform and a specialised
approach to network biology.
Its novel methodology and Discovery Engine allow the Company to
discover new and better drugs in a more efficient and effective
way.
For more information about the Company, please visit
www.etherapeutics.co.uk
This announcement includes "forward-looking statements" which
include all statements other than statements of historical facts,
including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of
management for future operations, and any statements preceded by,
followed by or that include forward-looking terminology such as the
words "targets", "believes", "estimates", "expects", "aims",
"intends", "will", "can", "may", "anticipates", "would", "should",
"could" or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Company's
control that could cause the actual results, performance or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding the Company's present and
future business strategies and the environment in which the Company
will operate in the future. These forward-looking statements speak
only as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward- looking statements contained in this
announcement to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or
circumstances on which any such statements are based. As a result
of these factors readers are cautioned not to rely on any
forward-looking statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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