Aqilion’s CEO: “We estimate a peak sales potential of a blockbuster magnitude”
Swedish biotech company Aqilion continues to make strides in the field of chronic inflammatory diseases. The company is now preparing for the next phase of clinical development for AQ280, a selective JAK1 inhibitor, in eosinophilic esophagitis. To support these efforts, Aqilion is conducting a rights issue of approximately SEK 26.8 million, with the subscription period running until March 12. BioStock spoke with CEO Sarah Fredriksson to learn more about the plans going forward.
– In the AQ280 base case scenario, we estimate a peak sales potential in an order of a blockbuster magnitude”, says CEO Sarah Fredriksson.
Aqilion’s pipeline is built on a foundation of early-stage drug development, emphasising novel therapeutic approaches to tackle diseases with limited treatment options. By leveraging cutting-edge science and strategic partnerships, the company seeks to deliver transformative solutions for patients worldwide.
Advancing treatment for eosinophilic esophagitis
Aqilion’s lead program, AQ280, is being developed as a potential treatment for eosinophilic esophagitis (EoE), a chronic inflammatory disease of the esophagus, characterised by difficulty swallowing, chest pain and persistent esophageal inflammation. Despite its growing prevalence, EoE remains underserved by current therapies, which are largely limited to symptom management rather than addressing the underlying disease mechanisms.
AQ280, a highly selective JAK1 inhibitor, targets the inflammatory pathways at the heart of EoE, offering a novel approach to treatment. Early clinical testing has shown encouraging pharmacokinetics and tolerability, paving the way for Aqilion to launch a phase II clinical trial to further assess the drug’s safety and efficacy in EoE patients.
Strategic rights issue to accelerate AQ280
To fuel AQ280’s clinical progression, Aqilion has initiated a rights issue to raise approximately SEK 26.8 million. Existing shareholders are granted one subscription right per share, with ten rights entitling the holder to subscribe for three new shares at a subscription price of SEK 13 per share. The subscription period is open until March 12.
Key shareholders, including LMK Forward, Grenspecialisten, LEO Pharma, and Nocroc Ventures, collectively account for about 38 per cent of the total issue.
Q&A with CEO Sarah Fredriksson
BioStock reached out to CEO Sarah Fredriksson to learn more about the ongoing rights issue and the plans going forward.
What motivated Aqilion to focus on eosinophilic esophagitis (EoE) for the AQ280 program?
– EoE is a serious chronic disease that is becoming increasingly prevalent, affecting both children and adults. It has a huge impact on quality of life. When we had the opportunity to acquire the AQ280 asset from LEO Pharma, we recognized that its quality and selectivity made it a strong candidate for treating EOE. The mode of action, along with the potential for a broader therapeutic window – allowing for higher dosing without severe side effects – compared to established JAK1 inhibitors, reinforced our decision to focus on EoE, a difficult-to-treat disease with a large unmet medical need.
What is the market potential within EoE?
– EoE is an emerging market with both favourable and challenging dynamics that could impact the commercial potential of AQ280. To account for this, we have developed multiple commercial scenarios, considering key market factors in EoE, such as competitive landscape, evolving pricing and reimbursement conditions, and overall market size. In our base-case scenario, assuming AQ280 captures a 10% peak share of the advanced therapy-eligible population, we estimate peak sales potential in an order of a blockbuster magnitude.
Can you tell us more about your partnership strategy for the AQ280 program?
– We are always open to partnerships and actively build relationships as part of our business development strategy. Our goal is to secure a partnership deal after phase 2, once we have proof-of-concept data in patients – assuming the results are positive. However, we remain open to discussions at any stage with the right partner. The most critical factor for us is maintaining IP value and staying on track with our development plan to ensure the product reaches patients as efficiently as possible.
Please elaborate on the decision to conduct a pharmacokinetic study with the new oral solution formulation?
– EoE patients struggle to swallow pills or capsules. To ensure ease of administration for study participants, we decided after our phase 1 study to develop a tablet that dissolves in water, making it easier to ingest.
– During our pre-IND meeting with the FDA, we received great support and feedback on our study protocol. We also determined that conducting a pharmacokinetic (PK) study is a strategic de-risking step before progressing to phase 2. This study, performed in healthy volunteers, will confirm that the new tablet formulation has a pharmacokinetic profile comparable to the capsule used in our phase 1 study.
What are Aqilion’s long-term goals for the AQ280 program?
– Our primary focus is on conducting the combined phase 2a and 2b study to demonstrate AQ280’s favourable characteristics and mode-of-action in EoE patients. We aim to complete that study by 2027. If successful, we anticipate partnering with a larger company for late-stage clinical development.
How do you plan to utilise the funds raised from the current rights issue?
– Most of the funds will be allocated to the AQ280 pharmacokinetic study, which will be conducted in healthy volunteers in the U.S. during the first half of this year. Additionally, we will continue advancing our preclinical programs according to plan and investing in business development, as always.
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.
