Prescient Therapeutics Moves Advanced PTX-100 Cutaneous T-Cell Lymphoma Therapy Closer to Commercialisation

Prescient Therapeutics (ASX: PTX) is fast emerging as the newest developer of an advanced cancer drug to meet a significant market need, potentially converting years of work into billions of dollars.

The company’s lead candidate PTX-100 is now in its all-important Phase 2 clinical trials.

It is at this stage where data read-outs can provide strong indications of whether a new drug will work and where most of the sector’s value inflection takes place.

Brutal Cancer

The flagship product is being developed to tackle refractory or relapsed cutaneous T-cell lymphoma (r/r CTCL)—a brutal cancer where patients have limited options.

PTX-100 has so far shown promising results against (r/r CTCL), including a 64% reduction or halt in tumour growth.

The ability to address a patient population which has been historically under-served is one of the reasons the company has attracted Orphan Drug and fast-track designations from the US Food and Drug Administration (FDA).

Potentially accelerating a pathway to market by circumventing long and complex development timelines could help Prescient penetrate the US$1.8 billion market by bringing the life-enriching therapy to patients faster.

Acquisition Target

Fast-tracking PTX-100 could well transform Prescient into a very attractive acquisition target for big pharma players seeking to acquire a valuable smaller company and its novel assets.

It is a common industry practice, driven by big pharma’s need to consistently replenish its drug pipelines and incorporate new and innovative technologies into their portfolios.

Acquiring a smaller biotech allows a buyer to mitigate the risks associated with internal drug development while often bringing extensive manufacturing and marketing experience, quality systems and regulatory compliance knowledge to the table.

Big Pharma Buy-Outs

US biotech Mirati Therapeutics proved this theory in 2022, when it was granted FDA accelerated approval for its groundbreaking candidate Adagrasib to treat adult patients with KRAS G12C mutation typically found in non-small cell lung cancers.

Less than a year later, the company found itself the target of a $4.8 billion takeover by US multinational Bristol Myers Squibb that included the acquisition of Adagrasib and other therapies already on market.

In December 2023, Pfizer completed the $43 billion buy-out of antibody-drug conjugate specialist Seagen, doubling its pipeline to more than 60 programs and nine oncology medications that the pharma giant claimed could have “blockbuster potential”.

More recently, Swiss company and world’s largest biotech Roche spent $1.5 billion to acquire Poseida Therapeutics and its cancer-fighting allogeneic CAR-T cell therapies to boost its development pipeline.

Licencing Agreements

Clinical-stage biopharmaceutical company Dimerix has entered into several licensing agreements to support the commercialisation of DMX-200 targeting the rare kidney disease known as FSGS which has limited treatment options.

DMX-200 is currently undergoing evaluation in a Phase 3 registrational study and the support includes a $230 million deal with Advanz Pharma for commercialisation of the drug in multiple regions; and a US$590 million agreement granting Amicus Therapeutics exclusive rights to develop and commercialise the drug in the US.

If PTX-100 secures a Phase 2b registrational study, it could become a highly attractive partnering or acquisition target, aligning to the same commercial opportunities that propelled DMX-200 towards its multi-million dollar deals.