Prima chief executive Matthew Lehman with chairwoman Lucy Turnbull. Photo: Michele Mossop Turnbull keeps faith in Prima CARRIE LAFRENZ
Lucy Turnbull sets the bar high on anything she becomes involved in, including as chairwoman of the small biotech, Prima Biomed.
While the former lord mayor of Sydney admits Prima still has a long way to go to become the next CSL, ResMed or Cochlear, she is optimistic about its prospects with ovarian cancer-fighting drug C-Vac. “If the technology for which there seems so much promise is proven, that will be a terrific piece of Australian innovation,” she says.
“This has the potential to be a platform technology for other cancer types, that’s the promise. You have to aim high but the quality of the people and the institutions we are working with is very high and I’m very optimistic.”
Her optimism can’t be dampened despite the stock’s downward trajectory. It has lost 70?per cent of its value since joining the Nasdaq through American Depositary Receipts just over a year ago. On Monday, Prima closed up 0.006¢ at just 7.8¢, valuing the company at $82.3?million. At its peak, Prima had a market cap of $350?million.
But Mrs Turnbull, the wife of opposition communications spokesman Malcolm, has put her money where her mouth is, stumping up more than $40,500 for 450,000 shares in Prima last month, taking her stake to just under 0.5?per cent. Mrs Turnbull has lon g been a believer in the company, which she helped keep afloat by investing $200,000 in 2008. Two years later she became chairwoman.
Boost to immunity Prima is seeking to commercialise an immunotherapeutic vaccine that uses the body’s process to destroy cancer cells. Human blood is injected with a protein called mucin-1. When the cancer killing T-cells “see” the mucin-1 they multiply to attack the cancer. This is injected back into the patient, who gets a major boost to immunity.
Prima is hoping to raise $15?million via a share purchase plan from existing shareholders to help fund key clinical trials. While Prima had $25?million cash at the end of the last quarter, Nomura analyst David Stanton believes it will need to raise another $15?million next year and $50?million in 2015 to support further clinical trials.
Kentucky-born chief executive Matthew Lehman, who is visiting Australia to talk to investors, believes the share purchase plan will be well supported and a placement was not considered. Given the dwindling share price he wanted to approach existing shareholders first.
“There is no magic theory. In the past year or so we have made good progress. Once we have achieved a big catalyst .?.?. then the company will be revalued. Our Phase 2 data will come out at the end of the year. This will be the most significant thing for the company in six years.”
More data needed Prima has no institutional shareholders on register. Several market sources say institutional funds need more hard data before making such an investment. One local biotech fund manager said he is not interested in Prima given it has to undertake a three-year clinical trial for C-Vac. “Also its ovarian cancer treatment might not be relevant in a few years with newer and better treatments coming to market.”
Dr Stanton has a “buy” on Prima but notes that even if all goes well the ovarian cancer drug will not hit the US market until 2017.
Prima has been criticised for ramping up its manufacturing while progressing slowly in its clinical trials. Mr Lehman defends its progress, despite enrolling less than 50 people for its 800 patient key cancer trial, which could cost between $30?million and $60?million. He said there were three keys that would pave Prima’s success to partnering its C-Vac drug : good clinical data, a reasonable understanding of what regulators are expecting and manufacturing capacity.
Prima had a recent win, with the German government granting $4.7?million to co-fund more research into using its vaccine for other tumour types.
“If we can show the Phase 11b trial this year is successful and we are simultaneously working on other cancer types, I think it broadens depth and market potential,” Mrs Turnbull says.
PRR Price at posting:
6.6¢ Sentiment: None Disclosure: Not Held
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