Uppsala-based DexTech has developed the CDC platform GuaDex, where the carbohydrate molecule dextran is combined with other active substances with the aim of developing treatments for various forms of cancer. The lead candidate OsteoDex is in an advanced clinical phase for the treatment of castration-resistant prostate cancer (mCRPC), where clear indications of tumor-inhibiting effects have been obtained.
DexTech is also investigating OsteoDex's potential in multiple myeloma – an important step in realizing the values it believes are embedded in the research and technology developed.
New Chairman of the Board to realize additional value
However, the company's ambition extends further than that, which is why it is now taking in Andreas Segerros as the new chairman of the board. Segerro's mission is to build a team that can realize additional value from the GuaDex platform and build on the research that has brought the company to where it is today.
»DexTech is a biotech company that has gone a little under the radar on the stock market, but for the wrong reason. They have come a long way in clinical development and have a platform in place. The founders are prominent in their respective fields and work actively in the company. At the same time, they have a strong owner behind them and are financed for three years to come. What we need to do now is to turn up the volume a little and build a DexTech that is really appetizing for an investor.« — Andreas Segerros, incoming chairman of the board of DexTech.
In Segerros, DexTech gains a global player with extensive experience in the pharmaceutical industry in Europe, the USA and Japan. After the nursery at pharmacy has focused a lot on portfolio development and M&A, including on Swiss Ferring Pharmaceuticals where he was responsible for business development and planning.
Involved in multiple transactions
Over the years, Segerros has been involved in several major transactions and was in his role at the Danish venture capital company Sunstone Life Science Ventures with and managed a portfolio of up to EUR 1,5 billion, and then co-founder of Eir Ventures.
In parallel with this, Segerros was chairman of Oncorena helped raise a total of SEK 160 million last winter, in an otherwise rather chilly capital raising climate. Oncorena is – like DexTech – a development company that has come a long way in its development with small funds. The winter injection meant that the company can now shift its development into a higher gear with the backing of three well-reputed funds.
The company in Oncorena soon led Segerros to receive an inquiry from an old mentor from the Pharmacia era, namely former Pharmacia CEO Hakan Astrom, who is currently DexTech's advisor.
»He called me and said that things were going well at Oncorena and wondered if I was interested in helping DexTech appoint a new board and management. When Håkan comes in this way, you know that it is a validated and good project, so of course I said yes. This is a group that really knows what they are doing. Anders R Holmberg has the chemistry knowledge and is the inventor behind the company's dextran technology. Sten Nilsson is an authority in prostate cancer, with expertise that is globally recognized. With what they have achieved, it is easy to take the next step and "turn up the volume."
Large international contact network
Segerros will be officially proposed as the new chairman at an extraordinary general meeting in May, and the work to find the right team to build on the development of DexTech has already begun. In addition to his broad network of contacts, Segerros will also assist the company with his background in M&A, with experience from having sat on the other side of the table on several occasions. This is especially relevant for DexTech, which has assets that are far ahead in development.
»I have been there and both financed and bought projects. It's like in rallying, I have been a co-driver so I know how to pressure the driver. Then I have been around a lot and the network of contacts means that I have access to many senior people in the industry, which will be important for the company. I have access to the "Håkan Åströms of the world."
Wants to give DexTech additional muscle
By all accounts, it is a partly new DexTech that shareholders have to look forward to with Segerro's entry, a DexTech that will have enough muscle to realize the potential embedded in the technology. With proof-of-concept in castration-resistant prostate cancer and upcoming studies in multiple myeloma, they are already well on their way, but the ambitions to unlock the value of the GuaDex platform are set higher than that.
»DexTech is working on a very important part of oncology, namely cancer that has spread to the bone. Even though we already have good results in prostate cancer, I think it is absolutely right to look at the possibilities in myeloma as well and validate the concept early. You never know where it will bite, so it is incredibly important to spread your possibilities.«
While the company is now making new investments going forward, there is a tense expectation on the stock market that the potential will be translated into some form of agreement. Although that is clearly the end goal, Segerros does not seem to be in a hurry to sit down at the negotiating table. The emphasis seems to be on getting the right agreement, rather than getting it done quickly.
»It's about building a good relationship with potential buyers or partners and updating them on where we stand so that they become curious themselves. You can't drag a horse to water, they have to come to you on their own. I'm an old M&A guy myself and want to create an open atmosphere for those who knock on our door.«