Cellmid (ASX:CDY) is raising $1.3 million through a share placement to progress its lead humanised oncology anti-midkine antibody (CAB102) for use in solid tumours towards the planned Phase I human clinical trials.
Binding commitments have been received from new institutional and sophisticated investors as well as existing shareholders for about 55 million shares priced at $0.023 each.
This represents a 17.9% discount to the last closing price of the company’s shares on 10 December 2014 as well as the five day volume weighted average price.
Proceeds from the capital raising will also allow the company to invest into commercial activities associated with its consumer health business.
Cellmid plans to start the CAB102 open label study in multiple solid tumours in the second quarter of 2015.
CAB102
In May, the company selected CAB102, which had been shown to significantly reduce chemotherapy resistance in a preclinical model of lung cancer in combination with carboplatin, as its lead humanised anti-midkine antibody.
It also selected Biotecnol SA subsidiary Rodon Biologics as the manufacturing partner. Rodon has already produced the humanised candidates for initial screening and tested CAB102’s manufacturability and stability in small-scale production runs.
CAB102 demonstrated the greatest efficacy in reducing mean tumour volumes at 21 days post treatment by 50% when combined with carboplatin, the standard therapy in lung cancer.
Initial cell expressions and stability data have also confirmed that CAB102 is manufacturable and stable, making it a feasible commercial drug product.
The clinical trial will also mark the first time midkine has ever been targeted by any drug.
A safe outcome in this study would not only add significant value to CAB102, it will also benefit Cellmid’s other therapeutic programs.
Planned phase 1/2a clinical study
- 1Q2015: Complete single dose toxicity studies;
- 2Q2015: Complete dose escalation studies
- 2Q2015: pre-IND meeting
- 2Q2015: Commence open label study in multiple solid tumours
- 4Q2015: Expected completion of phase 1/2a
The planned study will be carried out on late or end stage patients with prior chemotherapy.
It will involve 12 patients in four groups of three each. These will log 3 dose escalating (4 doses, 1 per week).
Analysis
The commitments to subscribe for $1.3 million worth of new shares demonstrates the confidence new investors and existing shareholders have in the potential of Cellmid’s lead anti-midkine antibody for use in solid tumours.
A successful trial will not only benefit CAB102, it will also benefit the company’s other therapeutic programs.
This high value oncology platform is underpinned by revenue producing assets.
Share price kickers ahead include results from IND-enabling studies and the start of the clinical program in early 2015.
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