Algorae Pharmaceuticals strengthens drug pipeline as AlgoraeOS Version 2.0 development continues

Algorae Pharmaceuticals (ASX: 1AI) has reported continued advancements to its proprietary Algorae Operating System (or AlgoraeOS) artificial intelligence (AI) drug discovery platform since it was officially launched in September.

The AI-driven innovation has identified 24 novel drug targets in the past seven months, focusing on high-impact oncology indications such as breast cancer, leukaemia and glioblastoma.

Algorae is now formalising an agreement with a leading Australian research institution to start preclinical validation studies of these targets that it sees as a key milestone in demonstrating the platform’s predictive and translational strength.

AlgoraeOS 2.0

The company ‘s development of AlgoraeOS Version 2.0 progressed rapidly during the three months to end March and included expanded data integration and advanced machine learning enhancements.

Algorae is collaborating on the development with experts from the AI Institute at the University of New South Wales and receiving economic support from the Data61 specialist arm of Australia’s CSIRO national science agency.

Version 2.0 aims to increase the platform’s predictive precision and support broader application across multiple disease classes, including the generation of novel and patentable fixed-dose combination therapies.

Therapeutic pipeline

Algorae achieved significant progress along its therapeutic pipeline during the quarter.

The company reported in April that in vitro studies using combination drug candidate AI-116 to treat dementia showed that the drug could significantly outperform first-line treatment Donepezil and improve neuronal cell viability.

Algorae has since filed a global Patent Cooperation Treaty (PCT) application and begun planning for a clinical trial involving AI-116.

In a separate study of drug candidate AI-168 for the treatment of cardiovascular disease, Algorae reported statistically-significant cardioprotective effects that exceeded the efficacy of beta blockers in multiple cell models.

The company said it would file a separate PCT application for AI-168 and would refine the compound’s formulation in collaboration with Monash University to evaluate the drug’s in vivo efficacy.

Management appointment

Algorae appointed Vishal Shah to the role of chief commercial officer earlier this month, capitalising on his 20 years of experience across pharmaceuticals, biotechnology and healthcare distribution.

Mr Shah previously held senior leadership roles with EBOS Group’s (ASX: EBO) HPS Pharmacies and Baxter Healthcare.

The company expects his commercial expertise to play a pivotal role as it prepares for commercial functions and partnering.

Cash balance

Algorae reported a cash balance of $2.59m at end March, following receipt of a $428,454 government tax rebate for research and development activities.

The company’s net operating cash inflow was $179,815, with expenditure of $147,703 allocated to research and development, while payments to directors and related parties totalled $67,499.

Algorae remains well-capitalised to execute on its near-term research and development and commercial objectives.