Pharma Equity Group (“PEG” or “the Company”) announced on Wednesday, October the 23rd, that the Company’s subsidiary Reponex Pharmaceuticals A/S (“Reponex”) has obtained patent protection in Japan for the treatment of colorectal cancer with RNX-051, valid until 2039.
The granting of a patent covering the Japanese market is a significant milestone for Reponex, which has now obtained patent protection for the RNX-051 treatment method in both Europe and Japan – two of the Company’s primary focus markets. Patent protection is seen as a key value driver and a crucial parameter in the future negotiations on the conditions for a potential license agreement.
Colorectal cancer is a significant public health problem in Japan, with both incidence and prevalence increasing in recent decades. It’s the most common cancer type in Japan, driven by an aging population, lifestyle changes, including changes in dietary habits, such as increased consumption of red meat and processed foods, as well as limited physical activity.
“We are very pleased that the Japan Patent Office has granted a patent for our innovative treatment method covering the Japanese market, which will thus be included as a significant positive parameter in our investment rationale of continued clinical development and our dialogue with future license partners,” says Thomas Kaas Selsø, CEO of PEG.
Internationally, there is increasing scientific recognition of the link between the presence of biofilms and the development of colorectal cancer. The biofilm has a major negative impact on the immune system’s ability to detect and fight cancer cells. To give a deeper context, PEG announced positive final results from the Phase II clinical proof-of-concept trial of the drug candidate RNX-051 in Q2-24. In connection to receiving the positive results, Reponex’s management concluded that its patented medicinal product RNX-051 appears to be highly effective for its intended purpose, and just a single local application drastically reduces tumor-associated biofilm. Additionally, a single local application can even totally eliminate the cancer-promoting Fusobacterium nucleatum in the tumor one week after the treatment.
Analyst Group’s view of the obtained patent
“Analyst Group views the approval of the patent application as a significant milestone in PEG’s IP and out-licensing strategy. The patent not only offers legal protection for the Company’s drug candidate but also strengthens PEG’s position as a valuable asset in negotiations with prospective licensing partners.
The colorectal cancer market was valued at USD 19bn in 2022 and is estimated to witness a 4.0% CAGR from 2022 to 2030, reaching USD 26bn by 2030.1 In the year 2020, approximately 12.7% of new cancer diagnoses and 12.4% of cancer-related deaths were attributed to colorectal cancer in EU-27 countries – this positioning marks it as the second most prevalent cancer, following breast cancer, and the second leading cause of cancer-related mortality, after lung cancer.2 Hence, the need of new innovative treatment methods in regards to colorectal cancer can be included in effective cancer treatment is more urgent than ever.
In summary, the indication area targeted by RNX-051 presents immense potential, offering PEG a substantial market share opportunity. A granted patent not only strengthens PEG’s IP portfolio but also opens doors to strategic partnerships, potential royalty streams, and consequently, profitability.”
Analyst Group’s View of Pharma Equity Group
Pharma Equity Group (“PEG” or “the Company”), through the Company’s subsidiary, Reponex, employs a drug repositioning strategy, which involves finding new uses for active substances used in previous recognized treatments, thus allowing the Company to circumvent phase I trials. PEG has a pipeline of six candidates in Phase II, targeting therapeutic areas such as Peritonitis, Chronic Wounds, IBD, and Colorectal Cancer, where there is currently no adequate treatment. The business strategy involves out-licensing the programs after Phase II to a pharma company capable of bringing the drugs to the market. PEG’s strategy enables a capital-light and highly scalable business model, offering a shorter route to market with equivalent upside potential, yet mitigating the typical risks associated with the pharmaceutical industry.
1https://www.databridgemarketresearch.com/reports/global-colorectal-cancer-treatment-market
2https://ecis.jrc.ec.europa.eu/sites/default/files/2023-12/Colorectal_cancer_en-Mar_2021.pdf
