2019 has also started positively for Xintela who recently announced that it is broadening and extending its patent protection for cartilage cell products, the latest in a series of landmark events and activities for the company.
In 2018, it has Medicon Village-based company has, among other things, inaugurated its own GMP facility for the production of stem cells, signed a letter of intent with German CO.DON on joint development of a stem cell product for the treatment of osteoarthritis, initiated the spin-off of its oncology business into a new company, Targinta AB, and has entered into a collaboration with American Catalent regarding joint development of ADC treatment for brain tumors. In addition, the project portfolio has been broadened to include CNS indications.
As mentioned at the outset, however, the event that attracted the most attention among investors was an announced new share issue that was then withdrawn in favor of a private placement – at double the market value – to German Bauerfeind AGThe transaction gave the company a new and stable major shareholder, as well as a cash injection of SEK 50 million.
»We have been very active in international partnering meetings, which has created great interest in Xintela's marker technology and projects in both cell therapy and oncology and led to several ongoing discussions about collaborations with potential partners.« – Evy Lundgren-Åkerlund, CEO of Xintela
For BioStock comments Evy Lundgren-Åkerlund, CEO Xintela, the eventful year.
You have achieved quite a few milestones over the past year. Which event or events would you like to highlight as particularly important for the company when you look back on 2018?
– The fact that we have a GMP facility in place for the production of stem cells and have come so far in the development work that we have now started planning for clinical studies in humans is a very important step forward. In addition, we have been very active in international partnering meetings, which has created great interest in Xintela's marker technology and projects in both cell therapy and oncology and led to several ongoing discussions about collaborations with potential partners.
Photo by Ola Torkelsson. ©Ola Torkelsson
Have you also chosen to streamline your operations?
– That's right. We have received a very positive response to the decision to spin off the oncology business and enable Xintela and Targinta to fully focus on their respective businesses within stem cell therapy and oncology.
You mention that you have several ongoing discussions with potential partners. You can already look back on a fairly successful year from that aspect?
– Yes, the discussions with CO.DON have been important and opened up the possibility of early establishing a collaboration for the development of cell therapy for OA. The fact that we received a significant investment and a long-term and strategic owner on board through Bauerfeind AG was of course very positive.
– Another very important event was that we signed a collaboration agreement with Catalent, a leading player in ADC technology, to jointly finance and develop an ADC therapy for brain cancer. The collaboration also builds an excellent foundation for Targinta's continued investment and expansion in oncology.
Can you say something about how the work on the spin-off of your oncology business to Targinta AB is progressing?
– Things are proceeding according to plan. In order for Targinta to be spun off, the company needs to be a public company and registered as a securities company, which means that there are a lot of administrative processes that are currently underway. We expect to have all the formalities in place during February. After that, we can complete the spin-off of the oncology business to Targinta. This will happen in connection with us raising financing for the company and we are currently looking at different financing solutions.
»We plan to start clinical studies at the end of the year, for the treatment of osteoarthritis, and we continue discussions with CO.DON about a possible collaboration in the development of a cell therapy product.«
What will be Xintela's main business focus in 2019 and what are the key milestones we can expect during the year?
– We are working hard to get a manufacturing permit in place for our GMP facility so we can start producing stem cells for clinical trials. We plan to start clinical trials at the end of the year, for the treatment of osteoarthritis, and we are continuing discussions with CO.DON about a possible collaboration in the development of a cell therapy product.
– With the oncology operations being moved to Targinta, Xintela will be able to focus on cell therapy and evaluate and prepare for treatment of new indications. When we have permission to produce stem cells, we will open up to broadening the use of our selected and quality-assured stem cells to other areas within regenerative medicine for both humans and animals.
»The goal is that in 2019 we will initiate work on the next indication area for humans and land a collaboration partner in veterinary medicine.«
What would such a broadening of use look like?
– The goal is that in 2019 we will initiate work on the next indication area for humans and land a partner in veterinary medicine. Within Targinta, we will evaluate the ADC antibodies that we are developing together with Catalent and select a candidate to proceed with. We will also select other oncology areas for Targinta based on results to be produced during the year.
»Interest in cell therapy is very high in Asia, which opens up interesting collaboration opportunities for Xintela.«
When we contacted you for this interview, we were told that some of you from Xintela were traveling around Asia last week. Can you tell us something about the purpose of the trip?
– There is a lot of interest in cell therapy in Asia, which opens up interesting collaboration opportunities for Xintela. During our “Asia tour” last week, I met with Thomas Areschoug, Xintela's business developer, several pharmaceutical companies in South Korea, Japan and China to present Xintela and our projects in stem cell therapy. We are receiving very positive feedback on our marker technology, stem cell-based product development and GMP facility and expect a continued dialogue with several of the companies.
Last but not least, what's at the top of your personal wish list for 2019?
– In addition to everything going as planned with GMP production and the start of clinical studies, a suitable partner in veterinary medicine would have been really good. I also hope that we can allocate time and resources to our neural stem cell project, which has fantastic potential.
– 2019 will of course also be Targinta's year. Here I wish that we quickly land funding for Targinta so that our exciting oncology projects can start flying.
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