Promising, page-11

Biotech Dimerix looking for partners as trials show promise


Dimerix kicks off a non-deal road show this week as it confirms early talks with potential partners after positive Phase II data on its latest clinical program.

Founder and chairman James Williams has a successful track record in generating returns in the start-up biotech sector.

Six years ago he delivered a 10-fold return selling his company iCeutica for $60 million to US-based Iroko Pharmaceuticals.

The pressure is now on to see if that success can be replicated with Dimerix, a drug discovery and development company based in Melbourne.

The company used to trade as Sun Biomedical. Its first product is a treatment for chronic kidney disease.

Management has confirmed it is in early talks with potential partners and investors.

It is understood the business is talking to multinationals and renal specialists from global markets including the US and Europe, following positive results from its kidney drug earlier this month.

Former Fortescue Metals executive director and Worley Parsons founding partner Peter Meurs has emerged as a major backer of Dimerix with a 17 per cent stake in the company.
Meurs left Fortescue and moved to Salt Lake City in Utah last year, after announcing plans to work full time for the Church of Jesus Christ of Latter-day Saints.

Dimerix is looking to attract a deal like that of fellow Australian biotech Fibrotech, which was acquired by Shire, which is based in Britain, in 2014 for $US75m plus milestones.

Market interest in the drug-discovery technology companies is strong, as shown by the April acquisition of Belgium-based drug discovery firm Ogeda by Japan’s Astellas Pharma for $US853m.

Local analysts believe Dimerix could attract a sale over a licensing deal, given the potential value in its platform drug-discovery technology, compared to other similar companies overseas.

Dimerix has sufficient cash to begin the final part of its Phase II study of its kidney drug this year but will need an extra $10m for a Phase III study next year.

The Phase II study met its primary safety endpoint.

It also demonstrated encouraging efficacy in a clinically meaningful number of patients in the trial.

Analysts it may be cheaper and easier for an interested party to buy Dimerix, which they say is undervalued compared to global peers like Retrophin and ChemoCentryx.

Both have Phase II drugs in development, but are valued at $US674m ($844m) and $US355m, respectively.

Analysts say Dimerix could be attractive to big pharma with an interest in kidney disease or looking to get into the space.