Novartis has outlined its catch-up plan in immuno-oncology under the leadership of Jay Bradner, President of the Novartis Institutes for BioMedical Research. Novartis is pioneering CAR-T therapy and has a range of around 18 immuno-oncology compounds in its pipeline. The company is also seeking buyout deals to top up its pipeline: smaller targets with early-stage candidates within a price target range US$2B - US$5B.
Nothing to do with Phylogica and anyway Phylogica is not an IO company - or is it?
A little background on Jay Bradner may help. Prior to the move to Novartis, Bradner worked with the Dana Farber Cancer Institute. Bradner has been a pioneer in working to understand Myc and has argued that unless the Myc problem is solved it will be difficult to cure cancer - Myc works as the master regulator of cell growth in myeloma and other cancers.
The Stanford University School of Medicine released a research paper in March 2016 titled Myc regulates the antitumor response through CD47 and PD-L1. In essence the research found that Myc controls two molecules which are essential for tumor progression and evasion of immune defences. PD-L1 will ring a bell for anyone who is familiar with the development of checkpoint inhibitors. Roche has come out the first PD-L1 checkpoint inhibitor in chasing down the blockbuster PD-1 checkpoint inhibitors marketed by Merck and Bristol-Myers Squibb.
PD-L1 and PD-1 are the targets everyone is chasing in IO. Behind, the curtain, however, it would appear that Myc is the master regulator. Novartis, according to its recent presentation, is focused on major mechanisms of immune escape. Could Myc become one of the biggest targets in IO research if a door is opened into a means to drug it? If it does, Novartis is well placed to seize the opportunity.
What could be the value for Phylogica in developing a promising POC data pack for its i-MYC cancer program? Could the valuation be AUD$300m or could it be in the US$2B - US$5B range?
PYC Price at posting:
3.5¢ Sentiment: Buy Disclosure: Held
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