Destiny Pharma gets closer to partnering deal on key asset XF-73 Nasal
() , a clinical stage biotechnology company, updated markets on the state of its portfolio in a year-end trading update.
Destiny said its main priority remained the XF-73 Nasal candidate for the prevention of post-surgical infections, given the substantial market opportunity for the product. said it was in discussions with a number of potential partners and expecting to update shareholders in soon on a deal to realise maximum value.
In addition, pre-clinical results are expected imminently for the XF-73 Dermal variant of the asset. Destiny expects to make further progress across its XF drug platform with target indications established for both XF-73 Dermal and XF-70, a novel anti-fungal from the XF platform, later in 2024.
Beyond XF-73, Destiny looks forward to advancing its NTCD-M3 development programme through 2024 alongside partner Sebela Pharmaceuticals. NTCD-M3 is Destiny Pharma's candidate for the prevention of Clostridioides difficile infection (CDI) recurrence. said discussions with multiple interested parties were ongoing.
View from Vox
Destiny Pharma is nearing a value inflection point with a number of its portfolio assets nearing commercialisation through ongoing partnering discussions. Destiny's products focus on reducing the emergence and impact of drug-resistant pathogens, with the XF-73 asset particularly notable for its potential to address a large unmet clinical need.
Surgical site infections are serious, potentially life-threatening complications, affecting large numbers of patients. They are a strain on healthcare systems, costing approx. US$10bn a year in the US alone. As such, there is significant unmet demand anticipated for XF-73 Nasal. Market analysis on the candidate has shown a potential worldwide market of US$2bn.
Additionally, having completed a deal with Sebela Pharmaceuticals for NTCD-M3 worth up to US$570m in 2023, partnering activities for the asset are ongoing. The addressable market for NTCD-M3 is also significant with CDI being the most common type of infection caused by antibiotic use. The agreement with Sebela significantly derisked the development and commercialisation of NTCD-M3 while removing the need for Destiny to further invest in the asset.
Ongoing partnering discussions are in line with Destiny's strategy of offloading Phase 3 trials to large pharma partners in order to keep its funding requirements low. Nevertheless, the company retains significant value through full or partial ownership of its assets, notably its XF-73 programme.
Both of Destiny's late-stage clinical assets address clear clinical needs and present strong potential for future revenue as the market for infectious and respiratory disease prevention and treatment continues to grow. is funded through to Q1 2025, allowing it to deliver on its current planned activities.
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