Uppsala-based DexTechs development revolves around the proprietary 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. With the lead candidate OsteoDex has primarily targeted skeletal metastases in castration-resistant prostate cancer (mCRPC). In OsteoDex, GuaDex has been coupled with the bisphosphonate alendronate, which allows the candidate to bind to the parts of the skeleton that have been attacked by daughter tumors. It has also included Guanidine, which contributes to a cell-killing effect.
Stock market disappointment despite clear impact data
DexTech has so far been able to present positive phase II data with OsteoDex, which has also been confirmed in a two-year follow-up with the participating patients. With such convincing results behind it, expectations have been high for the company to secure a partnership deal. When the phase II results were first presented in 2018, the share price surged several hundred percent and the company was valued at its highest at around SEK 1,9 billion. The company has consistently emphasized that the important thing is to get the right deal, rather than getting a deal quickly.
However, the stock market is notoriously impatient and the lack of an agreement has led to the once hot stock increasingly slipping into the shadows. At the time of writing, the stock is trading at just over 3 kronor – a fraction of its former peak levels – giving it a market capitalization of just over 50 million kronor.
Additional indication should further increase the value of the project
However, market capitalization alone is a poor indicator of the underlying value of a biotech development project, and DexTech is still working to secure the most advantageous partnership agreement possible. You can read more about valuation in the biotech sector. here.
The company is now also aiming to investigate OsteoDex's potential in multiple myeloma. So far, the candidate appears to be very effective against myeloma cells, according to the company - even more effective than against prostate cancer cells.
DexTech is currently preparing for a Phase I clinical trial with OsteoDex, with the primary objective of confirming the candidate's safety and tolerability. The study will also look at treatment response, changes in disease-related biomarker levels, and document patients' quality of life via Quality of Life scores.
Recently granted Läkemedelsverket permission for the study, which will be conducted at 4 to 5 hospitals around Sweden and other Nordic countries and will include 20 patients. Each patient will be studied for a total of 14 weeks and will receive a maximum of 7 doses of OsteoDex. The company expects to be able to start the study during the first quarter of 2023 and aims to have it completed during the fourth quarter of 2024.
New chairman wants to turn up the volume
In addition to the advancements in development, DexTech has also worked to strengthen the team around the project. This spring, a new chairman of the board was announced in Andreas Segerros, as in a interview with BioStock clearly declared the ambition to build a team that can get full leverage for the company's platform technology.
"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," says Andreas Segerros, chairman of DexTech, in the interview with BioStock and continues:
"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."
Strengthens the board
A puzzle piece in that building becomes Peter Benson, a new member of the board, who comes with extensive experience in the global life science industry. Benson was among others involved in founding the Danish venture capital company Sunstone Life Science Ventures and was its managing partner between 2007 and 2019.
He has held several senior positions, including Executive Vice President Marketing & Sales at Kabi Pharmacia Parenterals and as President Hospital Care and Senior Vice President at pharmacy. Benson previously held the gavel in Alligator Bioscience and is currently Chairman of the Board of Ascelia PharmaHe also serves as a board member of Ascelia Incentive, Sunstone Life Science Ventures and in PainDrainer.