| FAQs from the investor meetings as of June 2021
< FAQs from the investor meetings as of June 2021 >
We (or “PharmAbcine”) prepared this FAQ (Frequently Asked Questions) to provide answers to questions raised during the Q&A session of the investor meeting in the 2Q of 2021. We recommend viewers to refer to the previous FAQs as this issue only addresses newly raised questions.
Q1. How likely is it that PharmAbcine fail to secure funding from the ongoing rights issue?
It is extremely unlikely that the company will fail the ongoing rights issue. The rights issue will be underwritten by both KB Securities and Mirae Asset Securities under a stand-by underwriting agreement. This means that the two top investment bankers in Korea would follow through effectively to guarantee a success of the rights issue.
Under the stand-by underwriting agreement, the underwriters will initially ask the existing PharmAbcine shareholders for their subscription to new shares, and then offer the unsubscribed portion to the public. If there are any unsold shares after the public offering, the underwriters will buy them in full. The underwriters has told us that they expect no unsold shares after the public offering given the 25% discount rate on the newly issued shares.
Q2. Are there more plans to secure additional funds after the ongoing rights issue?
After the rights issue, PharmAbcine expects to secure enough cash to support operation for about two years. The company uses W20-30b in cash every year on average. As a biotech company with rapidly expanding pipeline, there is always a need for additional funding. However, we prefer to secure additional funding through attracting a strategic investor rather than issuance of convertible bonds or rights issues.
The company is not only making efforts to secure additional funding but also taking measures to reduce future cash needs and burning rate. Much of the efforts has been focusing on shortening R&D cycle and develop business development and operation strategy to sustain and generate cash reserve.
Q3. PMC-403, a vessel-normalizing antibody, is a very interesting asset. What is its development timeline?
In May, we initiated GLP-Tox studies for PMC-403 in ophthalmology. We need these studies to establish safety profiles of the drug candidate so that it can enter clinics. We expect to get the results in 1H2022. Once there are no safety issues with PMC-403, we plan to file an IND for a phase I clinical trial for an eye disease in 2H2022.
The company is also conducting multiple preclinical studies with other organizations to evaluate PMC-403’s efficacy in other vessel-related indications such as CKD (Chronis Kidney Diseases), diabetic foot ulcer, acute lung injury etc.
Q4. What is the competitive landscape of TIE2-activating molecules like?
The TIE2 competitive landscape looks favorable for PharmAbcine because there are only two direct TIE2 activating antibodies in development. Our PMC-403 is the leading molecule, followed by an antibody from Unity Biotechnology.
Other global biotechs are developing TIE2 regulating molecules as well, but they are either indirect TIE2-activating antibodies or TIE2-activating peptide/small molecules.
Q5. What is the competitive landscape of VISTA molecules like?
Curis is the leading biotech with VISTA antagonist antibody in the phase I clinical stage, and there are a couple of companies following right behind such as Pierre Fabre Pharmaceuticals, Hummingbird Bioscience, and PharmAbcine.
The anti-VISTA antibody from Curis entered a clinical-stage in September 2020, and the study is expected to be completed in 3Q2022. Pierre Fabre also started its trial in September 2020, but it is expected to be finished in 2024.
PharmAbcine will initiate a phase I trial with PMC-309 in 2022 and expects to finish the study around 2024. Based on the current developmental timeline of anti-VISTA antibody in early stage of clinical development, considering quality of the PMC-309, we are confident that PharmAbcine can be the front-runner in the race. .