Avecho Biotechnology gains traction on commercialising TPM-enhanced oncology drugs

Long-term efforts by Avecho Biotechnology (ASX: AVE) to further the clinical and commercial potential of its TPM (tocopheryl phosphate mixture) enhanced products gained traction during the three months to end June.

In May, the US Patent and Trade Marks Office allowed the company a new patent application covering an optimised manufacturing process for TPM.

When granted, the patent is expected to provide Avecho with monopoly rights to the process until at least December 2037.

The development follows the recent grant of patent rights to the TPM manufacturing process in India, Japan, Mexico, Russia and Singapore.

It is believed to have set a pathway for patent protection in the remaining jurisdictions where Avecho’s patent applications are pending.

Cancer drugs using TPM

Also in May, Avecho secured a licensing and development agreement with Arthur Group LLC to produce a series of optimised cancer drugs which can be solubilised using TPM.

Many high-potency oncology drugs have poor aqueous solubility and require solvents such as cremophor which can deliver a range of adverse side effects however replacing these solvents with TPM could potentially provide a safer alternative.

Under the terms of the agreement, Arthur Group will pay for all formulation, non-clinical and clinical development of the products and Avecho will receive 30% of revenue from licensing and 30% of net profit from commercialisation of these products.

Arthur Group currently develops and manufactures 23 commercial oncology products which have a combined US market size of $4.34 billion.

Cannabinoid gummies

In June, Avecho announced it had completed the development of first-generation TPM gummies containing cannabinoids.

Gummies are chewable, jelly-like preparations made from a mixture of glycerin and gelatin, and can incorporate a range of medications or nutraceutical ingredients.

They have become increasingly popular dosage forms for use with cannabinoids, as they provide an alternative method of consumption to smoking and vaping without the associated respiratory issues.

Avecho’s cannabinoid portfolio now contains oral oils, oral soft-gel capsules, oral edibles and topical gels.

All products show increased absorption from the inclusion of TPM and many are the subject of ongoing licensing discussions.

Capital raising

In April, Avecho launched an $11 million capital raise to fund a Phase III clinical trial for its proprietary CBD soft-gel capsule for the treatment of insomnia.

The raise was structured as an entitlement offer to shareholders and a subsequent shortfall placement with sophisticated and institutional investors.

The company received $2 million from shareholders which will allow US-based contractor Procaps Group to commence manufacturing three registration batches of the capsules.

Avecho has until early August to allocate the shortfall.