10-Q – Quarterly report [Sections 13 or 15(d)]

Supernus has filed a 10-Q – Quarterly report [Sections 13 or 15(d)] with the U.S. Securities and Exchange Commission (Filing, 10-Q, Supernus, 2017, NOV 8, 2017, View Source [SID1234521829]).

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Pacira Pharmaceuticals, Inc. Reports Third Quarter 2017 Financial Results

On November 8, 2017 Pacira Pharmaceuticals, Inc. (NASDAQ: PCRX) reported consolidated financial results for the third quarter ended September 30, 2017 (Press release, Pacira Pharmaceuticals, NOV 8, 2017, View Source;p=RssLanding&cat=news&id=2315327 [SID1234521756]).

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"We continue to make important progress during 2017 as we advance our strategy to expand the role of EXPAREL as the only long-acting local analgesic capable of providing non-opioid pain control during the most intense period of postsurgical pain," said Dave Stack, chairman and chief executive officer of Pacira. "Recent highlights include the FDA acceptance of our sNDA for nerve block; the publication of new research quantifying the devastating impact of opioids for postsurgical pain; a unique collaboration with Aetna to reduce opioid use associated with impacted wisdom teeth extractions; and the advancement of our important partnership with J&J."

"During the quarter we generated year over year EXPAREL growth despite fewer selling days and the impact of weather in areas of the southern United States representing about 20 percent of our business. From our commercial initiatives and current trends however; we remain confident in the growth potential of EXPAREL and our steadfast commitment to reducing the use of opioids for postsurgical pain."

Recent Highlights

U.S. Food and Drug Administration (FDA) Acceptance of Supplementary New Drug Application for Nerve Block. In October, the FDA accepted the company’s resubmission of its supplemental new drug application (sNDA) seeking expansion of the EXPAREL (bupivacaine liposome injectable suspension) label to include administration via nerve block for prolonged regional analgesia. If approved, EXPAREL could help eliminate the need for cumbersome devices like pumps and catheters and shift numerous procedures to an outpatient setting. The expected action date for the FDA under the Prescription Drug User Fee Act (PDUFA) is April 6, 2018.
Provided Invited Testimony at White House Opioid Crisis Commission Meeting. In September, Pacira Chief Executive Officer Dave Stack testified before President Trump’s Commission on Combating Drug Addiction and the Opioid Crisis. The Commission, led by New Jersey Governor Chris Christie, was created to study ways to combat and treat drug abuse, addiction and the opioid crisis. Stack provided insights into the critical nature of clinician and patient access to non-opioid medications that can effectively manage postsurgical pain while reducing opioid requirements.
Published New Research Highlighting Serious Threats Associated with Overprescribing Postsurgical Opioids. Newly published research, conducted by the QuintilesIMS Institute, shows individuals undergoing surgery are at particular risk for long-term opioid use. An overwhelming majority of patients (nine in 10) are exposed to opioids to manage postsurgical pain, and those given prescriptions received an average of 85 pills each. In addition, nearly 3 million individuals who had surgery in 2016 became persistent opioid users, according to the research. This report, The United States for Non-Dependence, represents the most current analysis of national trends in opioid prescribing.
Collaboration with Aetna and the American Association of Oral and Maxillofacial Surgeons to Reduce Opioid Use. In September, Pacira announced a nationwide collaboration with Aetna and the American Association of Oral and Maxillofacial Surgeons (AAOMS) aimed at reducing the number of opioid tablets prescribed to patients undergoing impacted third molar extraction by at least 50 percent through the utilization of EXPAREL to provide prolonged non-opioid postsurgical pain control.
Multiple EXPAREL Data Presentations at the New York School of Regional Anesthesia Annual Fall Symposium. In September, the company presented three posters evaluating the use of EXPAREL administered as a regional nerve block to manage postsurgical pain at the New York School of Regional Anesthesia’s (NYSORA) 16th Annual Symposium on Regional Anesthesia, Pain and Perioperative Medicine.
Third Quarter 2017 Financial Results

EXPAREL net product sales were $66.8 million in the third quarter of 2017, a 3% increase over the $64.9 million reported for the third quarter of 2016. There were two fewer selling days in the third quarter of 2017 compared to the third quarter of 2016.
Total revenues were $67.3 million in the third quarter of 2017, a 1% decrease versus the $68.4 million reported for the third quarter of 2016, primarily related to the discontinuation of DepoCyt(e) and lower collaborative licensing and milestone revenue.
Total operating expenses were $70.9 million in the third quarter of 2017, compared to $89.2 million in the third quarter of 2016.
GAAP net loss was $7.6 million, or $(0.19) per share (basic and diluted), in the third quarter of 2017, compared to a GAAP net loss of $22.2 million, or $(0.59) per share (basic and diluted), in the third quarter of 2016.
Non-GAAP net income was $4.4 million, or $0.11 per share (basic and diluted) in the third quarter of 2017, compared to non-GAAP net income of $8.0 million, or $0.22 per share (basic) and $0.20 per share (diluted), in the third quarter of 2016.
Pacira ended the third quarter of 2017 with cash, cash equivalents, short-term and long-term investments ("cash") of $374.9 million.
Pacira had 40.5 million basic weighted average shares of common stock outstanding in the third quarter of 2017.
For non-GAAP measures, Pacira had 41.4 million diluted weighted average shares of common stock outstanding in the third quarter of 2017.
2017 Outlook

Pacira is updating its full year 2017 sales guidance and reiterating its remaining financial guidance as follows:

EXPAREL net product sales of $280 million to $285 million from its previously guided range of $290 million to $310 million.
Non-GAAP gross margins of approximately 70%.
Non-GAAP research and development (R&D) expense of $50 million to $60 million.
Non-GAAP selling, general and administrative (SG&A) expense of $145 million to $155 million.
Stock-based compensation of $30 million to $35 million.
See "Non-GAAP Financial Information" and "Reconciliations of GAAP to Non-GAAP 2017 Financial Guidance" below.

Today’s Conference Call and Webcast Reminder

The Pacira management team will host a conference call to discuss the company’s financial results and recent developments today, Wednesday, November 8, 2017, at 8:30 a.m. ET. The call can be accessed by dialing 1-877-845-0779 (domestic) or 1-720-545-0035 (international) ten minutes prior to the start of the call and providing the Conference ID 96590192.

A replay of the call will be available approximately two hours after the completion of the call and can be accessed by dialing 1-855-859-2056 (domestic) or 1-404-537-3406 (international) and providing the Conference ID 96590192. The replay of the call will be available for two weeks from the date of the live call.

The live, listen-only webcast of the conference call can also be accessed by visiting the "Investors & Media" section of the company’s website at investor.pacira.com. A replay of the webcast will be archived on the Pacira website for two weeks following the call.

Non-GAAP Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), such as non-GAAP net income (loss), non-GAAP cost of goods sold, non-GAAP gross margins, non-GAAP research and development (R&D), non-GAAP selling, general and administrative (SG&A) and non-GAAP product discontinuation expenses, because such measures exclude stock-based compensation, amortization of debt discount, loss on early extinguishment of debt, a contract termination fee with CrossLink BioScience, LLC, or CrossLink, exit costs related to the discontinuation of DepoCyt(e) production and inventory and related reserves from 2016.

These measures supplement the company’s financial results prepared in accordance with GAAP. Pacira management uses these measures to better analyze its financial results, estimate its future cost of goods sold, gross margins, R&D and SG&A outlook for 2017 and to help make managerial decisions. In management’s opinion, these non-GAAP measures are useful to investors and other users of our financial statements by providing greater transparency into the operating performance at Pacira and the company’s future outlook. Such measures should not be deemed to be an alternative to GAAP requirements or a measure of liquidity for Pacira. Non-GAAP measures are also unlikely to be comparable with non-GAAP disclosures released by other companies. See the tables below for a reconciliation of GAAP to non-GAAP measures, and a reconciliation of our GAAP to non-GAAP 2017 financial guidance for gross margins, R&D and SG&A.

MacroGenics Provides Update on Corporate Progress and Third Quarter 2017 Financial Results

On November 8, 2017 MacroGenics, Inc. (NASDAQ:MGNX), a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, as well as autoimmune disorders and infectious diseases, reported a corporate progress update and reported financial results for the quarter ended September 30, 2017 (Press release, MacroGenics, NOV 8, 2017, View Source [SID1234521799]).

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"We continue to be encouraged by data we’ve seen across multiple product candidates in our diverse pipeline. At the Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) 32nd Annual Meeting later this week, we will have five posters relating to our various PD-1-based programs, including MGA012 (anti-PD-1) and our two PD-1-based DART molecules," said Scott Koenig, M.D., Ph.D., President and CEO of MacroGenics. "Also, in addition to the Phase 1 flotetuzumab data presented recently at the European Society for Medical Oncology Annual Congress (ESMO) (Free ESMO Whitepaper), we look forward to having two posters and an oral presentation with updated clinical data, at the 59th Annual Meeting of the American Society of Hematology (ASH) (Free ASH Whitepaper) in December. Finally, we are thrilled to work with our new collaboration partner, Incyte, to expand the current development efforts for MGA012 and accelerate our own efforts to investigate combinations of MGA012 with multiple molecules in MacroGenics’ portfolio."

Key Pipeline Highlights

Flotetuzumab. Enrollment of the Phase 1 dose expansion study of flotetuzumab, a bispecific DART molecule that recognizes both CD123 and CD3, is ongoing in patients with acute myeloid leukemia (AML) and myelodysplastic syndrome (MDS). Recent highlights include:

In September, MacroGenics presented clinical data from its ongoing Phase 1 study of flotetuzumab in an oral session at ESMO (Free ESMO Whitepaper). Flotetuzumab demonstrated acceptable tolerability in the dose escalation portion of the study with encouraging initial anti-leukemic activity observed in AML patients. As of the data cut-off date of August 1, of the 14 response-evaluable patients treated at the threshold dose, six (43%) experienced an objective response. This included four (28%) patients who achieved a CR/CRi, with one patient who had a molecular CR.
MacroGenics will present updated clinical data in an oral presentation at ASH (Free ASH Whitepaper) in December 2017.
PD-1-Directed Immuno-Oncology Franchise. MacroGenics is advancing several PD-1-directed programs, which are designed to enable both a broad set of combination opportunities across the Company’s portfolio and provide further differentiation from existing PD-1-based treatment options. The first of these are:

MGA012. Enrollment in the dose escalation portion of the Phase 1 study of this anti-PD-1 antibody has been completed and the data have been accepted for poster presentation at the upcoming SITC (Free SITC Whitepaper) meeting. MGA012 is currently being evaluated as monotherapy across four solid tumor types in the dose expansion portion of the Phase 1 study. In October 2017, MacroGenics entered into an exclusive global collaboration and license agreement with Incyte Corporation for MGA012, in which Incyte obtained exclusive worldwide rights for the development and commercialization of MGA012. MacroGenics retains the right to pursue its core strategy to develop its pipeline assets in combination with MGA012. The Company plans to initiate the first study of MGA012 in combination with another internal program by year end 2017.
MGD013. MacroGenics is developing MGD013, a DART molecule, to provide co-blockade of two immune checkpoint molecules expressed on T cells, PD-1 and LAG-3, for the potential treatment of a range of malignancies. The Company is enrolling the dose escalation portion of the Phase 1 study and will present a preclinical data poster as well as a Trials-in-Progress poster describing the Phase 1 study at SITC (Free SITC Whitepaper).
MGD019. MacroGenics continues to advance a preclinical bispecific DART molecule that provides co-blockade of PD-1 and CTLA-4, resulting in enhanced T-cell activation. The Company is conducting activities to support the potential submission of an Investigational New Drug (IND) application for MGD019 in 2018 and will present a preclinical data poster at SITC (Free SITC Whitepaper).
B7-H3 Franchise. MacroGenics is developing a portfolio of therapeutics that target B7-H3, a member of the B7 family of molecules involved in immune regulation. The Company is advancing multiple programs that target B7-H3 through complementary mechanisms of action that take advantage of this antigen’s broad expression across multiple solid tumor types. These molecules include:

Enoblituzumab: The Company and collaborators continue to recruit patients in multiple ongoing studies of enoblituzumab, an Fc-optimized monoclonal antibody that targets B7-H3. These studies include a combination study with an anti-PD-1 antibody and a neoadjuvant prostate cancer study.
MGD009: This DART molecule targets B7-H3 and CD3 and is being evaluated in a Phase 1 study across multiple solid tumor types. The Company continues to explore the dose and schedule for MGD009 administration.
MGC018: The Company is conducting activities to support the potential submission of an IND application for this anti-B7-H3 antibody drug conjugate in 2018.
Margetuximab. Recent highlights related to the Company’s Fc-optimized monoclonal antibody that targets the human epidermal growth factor receptor 2, or HER2, include:

Phase 3 Metastatic Breast Cancer Study. The pivotal SOPHIA study is evaluating the efficacy of margetuximab plus chemotherapy compared to trastuzumab plus chemotherapy in approximately 530 relapsed/refractory HER2-positive metastatic breast cancer patients. MacroGenics believes it is on track to complete and announce the results of an interim futility analysis by year-end 2017 or early 2018 and to complete enrollment of this study by late 2018.
Phase 2 Gastric Cancer Study. The Company continues to enroll advanced HER2-positive gastric and gastroesophageal junction cancer patients in its combination study of margetuximab with an anti-PD-1 antibody. MacroGenics expects to complete enrollment of two 30 patient expansion cohorts in 2017 and present clinical data during the first half of 2018.
Additional DART Clinical Programs. Other DART molecules being led by MacroGenics in Phase 1 clinical development include MGD007 (gpA33 x CD3) for colorectal cancer and MGD014 (HIV x CD3) for HIV. Updates on these programs include:

MGD007. MacroGenics continues to recruit patients with colorectal cancer in a Phase 1 study and is evaluating various expansion cohorts to define a recommended dose and schedule.
MGD014. MacroGenics’ IND submission for MGD014 was cleared by FDA and the Company anticipates that a first patient will be dosed in early 2018.
Corporate Update

Incyte Collaboration. In October 2017, MacroGenics and Incyte Corporation entered into an exclusive global collaboration and license agreement for MGA012. Under this agreement, MacroGenics will receive an upfront payment of $150 million and could receive up to $750 million in potential development, regulatory and commercial milestones. If MGA012 is approved and commercialized, MacroGenics would be eligible to receive royalties, tiered from 15 percent to 24 percent, on future sales of MGA012 by Incyte. The transaction is expected to close in the fourth quarter of 2017, subject to the early termination or expiration of any applicable waiting periods under the Hart-Scott-Rodino Act and customary closing conditions.
GMP Manufacturing. Construction progress on MacroGenics’ GMP manufacturing suite remains on track. The Company anticipates that the 5 x 2,000 liter single-use bioreactor facility will be operational in 2018. As part of the MGA012 collaboration with Incyte, MacroGenics retains the right to manufacture a portion of both companies’ global clinical and commercial supply needs of MGA012.
Third Quarter 2017 Financial Results

Cash Position: Cash, cash equivalents and marketable securities as of September 30, 2017, were $203.6 million, compared to $285.0 million as of December 31, 2016. MacroGenics anticipates receipt of the $150 million upfront payment from Incyte upon closing of the transaction in the fourth quarter of 2017.
Revenue: Total revenue, consisting primarily of revenue from collaborative agreements, was $1.7 million for the quarter ended September 30, 2017, compared to $3.3 million for the quarter ended September 30, 2016. Revenue from collaborative agreements includes the recognition of deferred revenue from payments received in previous periods as well as payments received during the period.
R&D Expenses: Research and development expenses were $41.0 million for the quarter ended September 30, 2017, compared to $30.3 million for the quarter ended September 30, 2016. This increase was primarily due to the initiation of the MGA012 Phase 1 study and continued enrollment in multiple ongoing clinical trials.
G&A Expenses: General and administrative expenses were $8.4 million for the quarter ended September 30, 2017, compared to $7.2 million for the quarter ended September 30, 2016. This increase was primarily due to increased professional fees, including consulting expenses, and increased employee compensation and benefit expense to support our overall growth.
Net Loss: Net loss was $47.0 million for the quarter ended September 30, 2017, compared to net loss of $33.8 million for the quarter ended September 30, 2016.
Shares Outstanding: Shares outstanding as of September 30, 2017 were 36,807,112.
Conference Call Information

MacroGenics will host a conference call today at 4:30 pm (ET) to discuss financial results for the quarter ended September 30, 2017 and provide a corporate update. To participate in the conference call, please dial (877) 303-6253 (domestic) or (+1) (973) 409-9610 (international) five minutes prior to the start of the call and provide the Conference ID: 5477659.

The recorded, listen-only webcast of the conference call can be accessed under "Events & Presentations" in the Investor Relations section of the Company’s website at View Source A replay of the webcast will be available shortly after the conclusion of the call and archived on the Company’s website for 30 days following the call.

Seattle Genetics and Astellas Initiate Phase 1b Trial of Enfortumab Vedotin in Combination with Immune Checkpoint Inhibitor Therapies in Locally Advanced or Metastatic Urothelial Cancer

On November 8, 2017 Seattle Genetics, Inc. (NASDAQ: SGEN) and Astellas Pharma Inc. (TSE: 4503, President and CEO: Yoshihiko Hatanaka, "Astellas"), reported dosing of the first patient in EV-103, a phase 1b clinical trial evaluating the safety and tolerability of enfortumab vedotin in combination with pembrolizumab or atezolizumab, two types of immune checkpoint inhibitor (CPI) therapies, for first- or second-line treatment of patients with locally advanced or metastatic urothelial cancer (Press release, Seattle Genetics, NOV 8, 2017, View Source;p=RssLanding&cat=news&id=2315341 [SID1234521763]). Enfortumab vedotin is an investigational antibody-drug conjugate (ADC) designed to deliver the cell-killing agent monomethyl auristatin E (MMAE) to the target Nectin-4.

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"The initiation of EV-103 is an important step in investigating the utility of enfortumab vedotin in earlier lines of therapy, including the first-line setting, for locally advanced and metastatic urothelial cancer, where patients ineligible for cisplatin-based chemotherapy continue to have limited treatment options," said Jonathan Drachman, M.D., Chief Medical Officer and Executive Vice President, Research and Development at Seattle Genetics. "This study represents Seattle Genetics’ third ADC under clinical evaluation in combination with CPIs, highlighting our vision that ADCs could be the preferred partners for immuno-oncology agents for patients with solid tumors and hematological cancers."

The EV-103 study is a single arm, open label multicenter trial that will enroll up to 85 patients with locally advanced or metastatic urothelial cancer who are ineligible for first line cisplatin-based chemotherapy or have progressed following treatment with a regimen containing platinum-based chemotherapy. Enfortumab vedotin will be administered during weeks one and two of every three-week cycle, and pembrolizumab or atezolizumab will also be administered during week one of this period. The primary objective of the trial is to assess the safety and tolerability of enfortumab vedotin in combination with CPI therapy. Secondary endpoints include the recommended dose in combination with CPIs, overall response rate (ORR), duration of response (DOR), progression-free survival (PFS), and overall survival (OS), among other measures.

"We are pleased to be moving forward with evaluating enfortumab vedotin in combination with CPI therapy, as we look to further investigate the potential of this agent in some of the hardest-to-treat cancers," said Steven Benner, M.D., Senior Vice President and Global Therapeutic Area Head, Oncology Development at Astellas. "Many patients do not respond to or relapse after treatment with CPIs, and we are committed to exploring additional ways to potentially address the unmet needs of the urothelial cancer community."

Enfortumab vedotin is also being studied as monotherapy in a pivotal clinical trial for patients with advanced urothelial cancer who have received prior CPI therapy, called EV-201 (NCT03219333), to support potential registration under the U.S. Food and Drug Administration’s (FDA) accelerated approval regulations.

For more information about the EV-103 clinical trial, please visit www.clinicaltrials.gov.

About Urothelial Cancer

Urothelial cancer is most commonly found in the bladder (90 percent). According to the American Cancer Society, approximately 79,000 people in the U.S. will be diagnosed with bladder cancer during 2017 and almost 17,000 will die from the disease. Outcomes are poor for patients diagnosed with metastatic disease, with a five-year survival rate of five percent.

About Enfortumab Vedotin

Enfortumab vedotin is an investigational ADC composed of an anti-Nectin-4 monoclonal antibody attached to a microtubule-disrupting agent, MMAE, using Seattle Genetics’ proprietary, industry-leading linker technology. Enfortumab vedotin targets Nectin-4, a cell adhesion molecule identified as an ADC target by Astellas, which is expressed on many solid tumors.

About Astellas

Astellas Pharma Inc., based in Tokyo, Japan, is a company dedicated to improving the health of people around the world through the provision of innovative and reliable pharmaceutical products. We focus on Urology, Oncology, Immunology, Nephrology and Neuroscience as prioritized therapeutic areas while advancing new therapeutic areas and discovery research leveraging new technologies/modalities. We are also creating new value by combining internal capabilities and external expertise in the medical/healthcare business. Astellas is on the forefront of healthcare change to turn innovative science into value for patients. For more information, please visit our website at View Source

CERENIS Therapeutics Acquires LYPRO Biosciences Expanding Its HDL Strategy Into Immuno-Oncology and Chemotherapeutic Drug Delivery

On November 8, 2017 CERENIS Therapeutics (FR0012616852 – CEREN – PEA PME eligible) (Paris:CEREN) an international biopharmaceutical company dedicated to the discovery and development of HDL-based innovative therapies for treating cardiovascular and metabolic diseases, reported the acquisition of LYPRO Biosciences assets, a portfolio of proprietary drug delivery nanotechnology (Press release, Cerenis Therapeutics, NOV 8, 2017, View Source [SID1234522017]). The operation positions CERENIS at the forefront of the chemotherapy drug delivery and immuno-oncology space. This represents a significant step towards the Company’s strategic objective of developing the next generation of multiple targeted drug delivery nanotechnologies associated with HDL therapy.

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Financial terms of the LYPRO Biosciences assets acquisition by CERENIS Therapeutics are not disclosed. LYPRO will receive single digit regulatory milestones as well as single digit royalties depending on products sales each year.

Jean-Louis Dasseux, CEO of CERENIS Therapeutics, commented: "We are thrilled to add the LYPRO technology development program and nanotechnology platform to our portfolio of world-class HDL assets. Building on the strong foundation of our lead HDL product, CER-001, this acquisition opens another therapeutic area characterized by a significant unmet medical need, while allowing us to leverage our leading HDL therapy capabilities to drive the development of this potentially revolutionary technology. We look forward to initiating the Phase I trial of NanoDisk and advancing other HDL-based assets, including CER-209 for NAFLD and NASH, in order to create value for patients, the medical community and other key stakeholders of CERENIS Therapeutics. Our enthusiasm about the fully enrolled TANGO trial continues, with results expected at the end of Q1, 2018."

Robert O. Ryan, Ph.D., Founder and Board Member of LYPRO, added: "We are extremely proud of accomplishments achieved by the LYPRO team. The product candidates that LYPRO has developed and associated with CERENIS’ proprietary HDL technology, could have a tremendous impact on the field of oncology, and we believe that CERENIS Therapeutics is the optimal company to lead future advancements of this groundbreaking technology. CERENIS Therapeutics holds the appropriate scientific, manufacturing, patent exclusivity, and clinical expertise to continue development of nanotechnology based delivery systems for therapies from laboratory bench to bedside."

Robert O. Ryan is a renowned expert in lipids, lipoproteins, lipid transport and metabolism. He is Professor and Chair of the Biochemistry and Molecular Biology Departments at the University of Nevada.

Michelle Stecklein Call, CEO of LYPRO Biosciences, added: "This agreement marks a transformational step for LYPRO Biosciences’ targeted HDL nanotechnology. CERENIS’ lead, drive and focus on HDL is a major competitive advantage to successfully take forward HDL-based targeted nanodelivery technologies to the market."

Combining LYPRO Biosciences’ NanoDisk technology with CERENIS’ HDL technology to build the first HDL particle delivery platform dedicated to the oncology market, including immuno-oncology and novel chemotherapeutic delivery technologies.

CERENIS acquires LYPRO Biosciences assets, including patent rights and in-depth pre-clinical data showing efficacy of lipid structures in encapsulating and delivering active drugs to tissues

LYPRO Biosciences is a privately-held therapeutic development company with a proprietary drug delivery nanotechnology that can increase the solubility and bioavailability of hydrophobic drugs and other therapeutic compounds as well as facilitates targeting to specific receptors. LYPRO’s technology, entitled "NanoDisk", is based on self-assembling, targetable, nanometer-scale bioparticles, incorporating active drugs into the stable and water-soluble NanoDisk.

The combination of the NanoDisk technology with CERENIS’ natural recombinant human apoA-I used in its HDL platform will result in the next generation of drug delivery platforms. This should allow for increased efficacy, while needing lower doses with reduced side effects compared to current drug delivery technology.

Targeting LYPRO NanoDisk to a specific cell surface receptor allows the delivery of a cell killing agent directly targeted to the diseased cell. Similar approaches are now being used for cancer treatment in the form of antibody-drug conjugates (ADC). However, these agents have a complex chemistry, limited drug to antibody stoichiometry and form an obstacle to drug release. Targeted NanoDisk may be considered as an ADC parallel technology unencumbered by ADC chemistries and patent estates.

A disruptive technology with high potential in targeted oncology and immuno-oncology

LYPRO’s most advanced technology, NanoDisk, combined with the CERENIS HDL, CER-001, targets a specific human cell HDL receptor, SR-B1. The SR-B1 and other HDL receptors (ABCA1) are scavenger receptors essential to cell homeostasis, proliferation and growth that are up-regulated in cancer cells. Therefore, these receptors serve as a potential gateway for the delivery of therapeutic agents when reconstituted HDL nanoparticles are used to transport agents to cancer cells and tumors.

Research underlying HDL used for delivering drugs to cancer cells and tumors as well as the role of the SR-B1 receptor as a potential gateway for the delivery of therapeutic agents was originally conducted by Professor Daniel Sparks, Ottawa Heart Institute Research Corporation, Ottawa, Canada, and has been published in a number of peer-reviewed publications (e.g. Zheng et al., Frontiers in Pharmacology 7:326, September 2016).

The Targeted NanoDisk technology developed by LYPRO Biosciences and allied with the CER-001, an engineered complex of recombinant human apoA-I, the major structural protein of HDL with phospholipids, holds the promise to target and selectively kill malignant cells while sparing healthy ones. A wide variety of drugs can be embedded in nanodisks which will target markers specific to cancer cells and bring these potent drugs to their intended site of action, with lowered systemic toxicity.

Using its existing technologies with LYPRO’s NanoDisk discoidal HDL, CERENIS is positioned to utilize HDL related particles to selectively target a wide variety of tissues. HDL nanoparticles are ideal drug carriers to target cancer cells thanks to their attractive biological features, having important advantages over other delivery systems.

HDL particles are natural carrier agents and more efficient than existing solutions

The ability to accommodate highly water insoluble constituents in their core regions enables HDL type nanoparticles to effectively transport hydrophobic drugs subsequent to systemic administration. While the utilization of reconstituted HDL as a carrier can be considered for the treatment of a number of diseases, the initial focus for CERENIS will be on HDL type drug delivery agents for cancer chemotherapy and immuno-oncology.

HDL nanotechnology presents several major advantages over drug delivery agents such as liposomes. First, lipoproteins, including synthetic lipoprotein formulations, tend to be much smaller (6-50 nm diameter) than liposomes. This feature may be a significant advantage as the smaller drug carrying nanoparticles could more effectively enter the tumor environment. Moreover, the HDL biological structure, as a naturally occurring particle, presents a superior safety profile as it is completely biodegradable.

HDL particles are adaptive with the ability to carry different types of molecules allowing for a different location and pace of release. From lipid-poor apoA-I to NanoDisk (discoidal HDL), HDL related particles will be able to target a wide variety of tissues.

A range of CERENIS’ drug delivery HDL particles present numerous advantageous characteristics, including:

1) Enhanced safety and efficacy yielding a solid, non-leaking preparation due to a structure stabilized by apolipoproteins, particularly apolipoprotein A-I (apoA-I).

2) Biocompatibility and safety of the carrier, shown by several pharmaceutical formulations, made up of essentially the same ingredients as natural HDL

3) Strong ability to target cancer cells via the expression of the SR-B1 receptors on the cells’ surface.

4) The receptor-mediated uptake of the payload, carried in the core of the HDL particle makes this strategy uniquely applicable, especially for cancer chemotherapy and antigen carrying immune-oncologic applications.

5) This wide range of applications is made possible as apoA-I is flexible to adapt from lipid-poor apoA-I, to discoidal particles allowing different types and quantities of drug payloads.

6) Finally, CERENIS owns the right to an exclusive validated manufacturing process to produce apoA-I, apoA-I peptides and HDL on an industrial scale, and the Company benefits from a strong patent barrier to entry, preventing the emergence of similar competitive technologies.

Phase I study, evaluating the technology’s safety in delivering active drugs to cancer tissues, to be launched by the end of 2019.

Acquiring the LYPRO Biosciences pre-clinical data supporting the proof of concept, CERENIS Therapeutics could launch, by the end of 2019, the first Phase I study to evaluate an HDL particle as a nano transporter of active drug for an oncologic indication. In the short term, CERENIS will set up a clear clinical strategy to select the most appropriate initial indication in oncology in order to demonstrate safety and efficacy of its new product candidate. The company also plans to advance its effort in the use of this technology to encapsulate tumor antigens to induce an immune response, possibly in combination with existing therapy (e.g. a checkpoint inhibitor) in the pursuit of immuno-oncology applications.

New strategic markets and value-creation prospects: Immuno-oncology is one of the most promising cancer treatment technology in a market valued at $100 billion by 2020.

Recognized by experts as one of the most promising fields in cancer treatment, immuno-oncology is an innovative approach to the treatment of cancers by leveraging the body’s own immune system.

The immunotherapy global market (antibodies, cancer vaccines, immune checkpoint inhibitors, immunomodulators) is valued at $100 billion by 2020. The prophylactic cancer vaccine market (exclusive of therapeutic cancer vaccines) is expected to reach $4 billion in valuation by 2019. Expectations and interest for therapeutic cancer vaccines have increased dramatically as a means to increase immuno-oncology drug response, duration and survival of poorly responding and non-responding cancer patients. There are few accurate estimates for the therapeutic cancer vaccine market as there are, to date, few successes and approvals. CERENIS’ new HDL-based targeted nanotherapeutics address a new potential market with a very large upside growth potential in the oncology field. It gives CERENIS a new strategic value for its markets related to its apoA-I/HDL technology and the development of a targeted nanotechnology platform.