Cline Scientific ready for the next challenge
During the summer, biotech company Cline Scientific successfully carried out a share issue to raise approximately SEK 6.1 million before expenses. With the new capital, the company can take on the next challenge – to drive the stem cell project StemCART towards clinical studies. BioStock talked to CEO Hanne Evenbratt about the path forward.
Mölndal-based Cline Scientific is developing two projects in preclinical phase – StemCART, a stem cell-based therapy for the treatment of cartilage damage, and CellRACE, a diagnostic tool for assessing the risk of cancer spreading. Both projects use Cline Scientific’s patented surface technology, which consists of several million gold nanoparticles in a gradient pattern.
Rights Issue lays the foundation for development
Cline Scientific is coming off a challenging period of significant pressure on the company’s finances. To fund continued operations and the development of the two projects, Cline Scientific carried out a rights issue of approximately SEK 9.25 million during the summer. In August, the company announced that the issue was 68 per cent subscribed, of which approximately 48.8 per cent was subscribed with subscription rights. The issue provided the company with approximately SEK 6.1 million before costs. The capital is expected to last for about 12 months and is enough for Cline to continue driving development and to secure finances for the development of the stem cell therapy StemCART.
StemCART’s path to clinic
With the cash position strengthened, Cline Scientific is now focusing on advancing StemCART towards clinical studies. The the plan is to start studies in humans in 2025. However, before the company can initiate the clinical phase, some work remains to be done. Among other things, there is a need to conduct further preclinical studies and regulatory work. In order to carry out process development prior to GMP development, Cline Scientific has signed a letter-of-intent with Belgian contract manufacturer NecstGen.
The CEO comments
BioStock contacted CEO Hanne Evenbratt to learn more about Cline Scientific’s next steps.
Hanne, could you comment on the outcome of the rights issue?
– Anyone who has tried to carry out an issue during the summer months knows that it is the most difficult time, as most investors leave stock trading during this usually quiet trading period. Therefore, we are extra proud that we had so many participants and that the subscription rate was as high as it was. It shows that there is both belief in and interest in our projects.
The focus will now be on StemCART. What is the next step in StemCART’s development?
– In the near future, we will work in the cell lab with dose and time determination for the healing of cartilage. This is done to optimise healing and find out within which range of cell quantity and time the process is at its best. This will be crucial when entering clinical phase studies, but it is one of the parts where patience and accuracy will be key.
What is the long-term plan for StemCART?
– We want to take the project through clinical phase I/IIb, after which a party with greater financial muscle is required to be able to run the project through subsequent phases and then launch the product. Most large companies in the industry have this type of functionality in place and can therefore more efficiently, both in terms of cost and time, take the product all the way to the market.
What is the plan for CellRACE?
– The laboratory work with CellRACE is planned based on calmer periods in the StemCART project. Here, the software for AI analysis of the movement of tumour cells along our nanogradients will save us a lot of time in analysing the results and further streamline the work. At the same time, the patent application process is proceeding according to plan and is on its way into countries outside the EU. The project is not Cline’s main focus right now, but it will continue to move forward at the pace that finances and labour allow.
You have now secured funding for about 12 months. How do you work to find financing solutions beyond this time?
– We are reviewing several different funding routes, for example through directed issues, EU grants or research collaborations with interested companies or organisations. It is of course a great challenge to reach the right people in organisations who can provide the necessary funds. The projects have great potential, but if they do not know that we exist, they do not have the chance to invest, and of course we would like to give them that opportunity.
Finally, what milestones do you hope you can present before the end of the year?
– We are always happy to share information about what is happening in the company. As is typical in market-listed companies, everyone should have access to the information at the same time. So, just keep an eye out for Cline’s press releases, and if you want more information, it will be published as newsletters or through other interesting channels. As soon as we have something to share, we will do it. In the meantime, we work hard to reach set milestones.
Learn more about Cline Scientific on the company’s website.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.
