Destiny Pharma to finalise commerical agreements for main assets in 2023, shares soar
( ) , a clinical stage biotechnology company, issued a trading update today detailing progress made in 2022, including work to finalise a partnering agreement for its flagship NTCD-M3 programme.
NTCD-M3
NTCD-M3 is Destiny's lead asset for the prevention of Clostridioides difficile infection (CDI) recurrence. In 2022, the company focused on securing a commercialisation partner for NTCD-M3, and has so far entered exclusive negotiations with an unnamed US pharma company following agreement of heads of terms. Destiny said the parties are currently working to close the transaction and announce a collaboration in early 2023.
The currently agreed heads of terms state that all future clinical development and commercialisation of NTCD-M3 in the US will be funded by the partner.
XF-73 Nasal
XF-73 Nasal is a drug candidate developed from Destiny's XF platform, initially being developed for for the prevention of post-surgical staphylococcal infections, such as MRSA. In 2022 Destiny defined a US and EU Phase 3 clinical development plan for its XF-73 Nasal and is now running a partnering campaign, reporting some "early discussion underway".
Destiny aims to secure a commercialisation partner for XF-73 Nasal in 2023.
Neil Clark, CEO, commented:
"The Board remains fully focused on delivering a comprehensive partnering deal for NTCD-M3, our lead asset, early in 2023 and we are working with the counterparty to achieve this. We are also very excited to finalise our Phase 3 plans for XF-73 Nasal and intensify partnering discussions now that we have detailed regulatory feedback. Our aim is to end 2023 having secured partners for both of our lead assets to complete their final Phase 3 clinical studies, registration and approval in key markets - especially the United States."
View from Vox
A positive year-end update from Destiny Pharma, detailing the company's plans to finalise partnerships and ready its two main assets for commercialisation by end of 2023. Investors have reacted accordingly, sending shares up 18% today in London.
Importantly, Destiny's US partner in negotiations for NTCD-M3 has agreed to take on all clinical development and commercialisation funding. This guarantees funding for NTCD-M3's final clinical programme, significantly derisking Destiny's R&D investment in the asset to date, and freeing cash to invest in other programmes.
Destiny also reported "good progress" on its earlier pre-clinical pipeline programmes, and will end 2022 with two active dermal infection projects running in the US and China, and the completion of its SporCov Covid-19 grant-funded collaboration. Destiny will issue further updates on these projects in 1H 2023.
In summary, investors are now looking at early 2023 for finalisation of NTCD-M3 partnering negotations, clear plans for XF-73 Nasal Phase 3 clinical development with an active partnering programme underway, and confirmed progress on ealier programmes targeting dermal infections and Covid-19.
Destiny Pharma's two late-stage clinical assets present strong potential for future revenue as the market for infectious and respiratory disease prevention and treatment continues to grow. Both NTCD-M3 and XF-73 are supported by strong Phase 2 clinical data and address clear clinical needs with significant commercial opportunities. To this end, the company has already received detailed US and European regulatory feedback for both assets.
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