Flamingo Therapeutics and Dynacure Announce Merger to Create Leading RNA Therapeutics Company Focused on Clinical Oncology

On March 2, 2023 Flamingo Therapeutics ("Flamingo") and Dynacure, reported that the companies have signed a definitive merger agreement to combine their pipelines and expertise to create a leading oncology company (Press release, Flamingo Therapeutics, MAR 2, 2023, View Source;utm_medium=rss&utm_campaign=flamingo-therapeutics-and-dynacure-announce-merger-to-create-leading-rna-therapeutics-company-focused-on-clinical-oncology [SID1234628036]). The combined company will advance Flamingo’s lead programs: danvatirsen in a Phase II trial PEMDA-HN in Head & Neck cancer (danvatirsen in combination with pembrolizumab) and other indications; and FTX-001 targeting MALAT-1 in cancer (IND ready). In addition, Flamingo’s current investors Kurma Partners (France) and PMV (Belgium) made a further investment in the company.

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Danvatirsen is an antisense oligonucleotide (ASO) that selectively targets STAT3 and has shown clinical activity in two Phase II clinical studies. Danvatirsen binds to STAT3 mRNA, inhibiting translation of the transcript. The therapeutic effect of STAT3 suppression results in reduction of tumor cell growth as well as activation of anti-tumor immunity mediated by the tumor micro-environment.

Currently, danvatirsen is planned to continue Phase 2 clinical development for head and neck squamous cell carcinoma to advance the program through key clinical milestones and data readouts. In addition, the combined company will also advance FTX-001, Flamingo’s most advanced long non-coding RNA (LncRNA) program which targets MALAT-1, through readiness for Phase 1 in solid tumors. LncRNAs are a large and untapped class of disease-causing targets within the "dark matter" of the human genome.

"The merger of Flamingo and Dynacure is a great strategic fit for both companies, leveraging a wealth of RNA therapeutic expertise and cancer drug development, and combining teams to create a stronger organization," said Stephane van Rooijen, Chief Executive Officer of Flamingo. "With our well-defined clinical strategy and operational plan, we are focused on creating value for all stakeholders, including patients, clinicians, and our investors. We plan to continue to execute upon our clinical strategy with the combined company and team in place."

"We are delighted to join forces with the Dynacure team to execute an exciting transition plan for the long-term success and growth of Flamingo. The merger will focus our priorities on clinical execution, while adding additional resources," added Michael Garrett, Chief Operating Officer of Flamingo.

Chris Mirabelli, Ph.D., Chairman of the combined company, added, "We have tremendous confidence in danvatirsen and our MALAT-1 targeted ASO (FTX-001), and look forward to delivering on our ambitious clinical plan with multiple readouts planned for 2024 and 2025."

Brett P. Monia, Ph.D., Ionis’ Chief Executive Officer, added, "We are pleased that the combined company will advance Ionis-discovered cancer therapies where there is an unmet need, enabling Ionis to focus our resources on our pipeline priorities. The strength and dedication of the Flamingo leadership team, combined with their core expertise in oncology drug development, provide for a compelling foundation for future success for all stakeholders, including Ionis."

Management and Organization

The combined company will be led by Dynacure’ Chief Executive Officer, Stéphane van Rooijen (MD, MBA) – who will become the combined company’s Chief Executive Officer – and Flamingo’s Chief Executive Officer, Michael Garrett – who will become the combined company’s Chief Operating Officer. The company will be headquartered at the location of its laboratory facilities in Leuven (Belgium) and have offices in Strasbourg (France), and Philadelphia (USA). The combined company’s board of directors will be comprised of members from both Flamingo and Dynacure, including Chris Mirabelli, Ph.D., Chairman of Leap Therapeutics, who will act as Chairman of the combined company, Brett P. Monia, Ph.D., President and Chief Executive Officer of Ionis Pharmaceuticals, Benoit Barteau, Tine Bekaert, Rémi Droller, Jean Franchi, George Gemayel, and Henry Skinner.

About PEMDA-HN Phase II Trial in Head & Neck Cancer

Flamingo Therapeutics is planning to initiate a Phase II trial evaluating the STAT3 targeting agent danvatirsen, in combination with pembrolizumab, in patients with head and neck squamous cell carcinoma (HNSCC).

The trial is planned to be a multicenter, open-label, randomized study comparing the combination of danvatirsen and pembrolizumab to pembrolizumab alone as first line therapy in patients with recurrent/metastatic HNSCC whose tumor has a PD-L1 expression. Eligible patients will be randomized in a 2:1 ratio to receive either danvatirsen + pembrolizumab or pembrolizumab monotherapy, respectively. After the screening period, eligible patients are planned to receive study treatment until disease progression or discontinuation. The planned primary endpoint of the study is to determine the overall response rate by RECIST 1.1 as assessed by the investigator. The secondary endpoints will include safety, duration of response, disease control rate, progression free survival and overall survival. The study is planned to be operated at US study centers.

BioMarin to Participate in Three Investor Conferences in March

On March 2, 2023 BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) reported that management will participate in three upcoming investor conferences in March (Press release, BioMarin, MAR 2, 2023, View Source [SID1234628035]). Management will present at the Cowen Healthcare Conference on Wednesday, March 8th at 10:30am ET and at the Barclays Global Healthcare Conference on Wednesday, March 15th at 9:30am ET.

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For these conferences, that will be webcast live, please access by visiting BioMarin’s website at View Source A replay of the webcasts will be available for the events with presentations through the Company’s website for a limited time following the conferences.

BioCryst Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

On March 2, 2023 BioCryst Pharmaceuticals, Inc. (Nasdaq: BCRX) reported that the compensation committee of BioCryst’s board of directors granted 12 newly-hired employees stock options to purchase an aggregate of 110,400 shares, and restricted stock units (RSUs) covering an aggregate of 51,300 shares, of BioCryst common stock (Press release, BioCryst Pharmaceuticals, MAR 2, 2023, View Source [SID1234628034]). The options and RSUs were granted as of February 28, 2023 as inducements material to each employee entering into employment with BioCryst. The options and RSUs were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

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The options have an exercise price of $8.85 per share, which is equal to the closing price of BioCryst common stock on the grant date. The options and RSUs vest in four equal annual installments beginning on the one-year anniversary of the grant date, in each case subject to the new employee’s continued service with the company. Each stock option has a 10-year term. The options and RSUs are subject to the terms and conditions of BioCryst’s Inducement Equity Incentive Plan and a stock option agreement or restricted stock unit agreement, as applicable, covering the grant.

Aptose Biosciences to Present at Oppenheimer 33rd Annual Healthcare Conference

On March 2, 2023 Aptose Biosciences Inc. (Nasdaq: APTO; TSX: APS), a clinical-stage precision oncology company developing highly differentiated oral kinase inhibitors to treat hematologic malignancies, reported that William G. Rice, Ph.D., Chairman, President and Chief Executive Officer, will participate in the Oppenheimer 33rd Annual Healthcare Conference being held March 13-15, 2023, in a virtual format (Press release, Aptose Biosciences, MAR 2, 2023, View Source [SID1234628033]).

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Oppenheimer 33rd Annual Healthcare Conference
Presentation Details:

Date: Monday, March 13, 2023
Time: 12:40 – 1:10 PM ET
Format: Fireside Chat – William G. Rice, PhD, Chairman, President and Chief Executive Officer, Aptose, with Matthew Biegler, Senior Analyst, Emerging Biotechnology, Oppenheimer
Webcast: LINK
The audio webcast will be archived shortly after the live event and will be available through the Aptose website, www.aptose.com.

The Aptose management team will be hosting virtual one-on-one meetings during the conference. To schedule a one-on-one meeting, please contact your conference representative.

Bavarian Nordic Publishes Annual Report 2022

On March 2, 2023 Bavarian Nordic A/S (OMX: BAVA) reported its Annual Report for 2022 (Press release, Bavarian Nordic, MAR 2, 2023, View Source [SID1234628011]). The consolidated, audited results were in line with the preliminary results, announced on January 16, 2023. The full report is attached as a PDF file and can be found on the company’s website, www.bavarian-nordic.com.

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Paul Chaplin, President & Chief Executive Officer of Bavarian Nordic said: "We proudly delivered all-time high revenues in 2022 resulting from significant deliveries of mpox vaccine to countries worldwide during the outbreak, combined with a strong performance in the rabies business, particularly in the US. The travel vaccine market is rebounding, and we are anticipating stronger sales in 2023, which in combination with continued deliveries of mpox vaccines will generate even higher revenues in 2023. Through the recent acquisition of a travel vaccine portfolio from Emergent BioSolutions, we are not only strengthening our core, revenue-generating business, but are also adding a new, promising vaccine candidate in Phase 3 development with a significant potential to address a large, unmet medical need. We are anticipating data from this and our two other ongoing Phase 3 trials later in 2023 and are thus looking forward to another very busy and exciting year at Bavarian Nordic."

Important events after the balance sheet date

In February, Bavarian Nordic announced an update on the ongoing Phase 3 trial of the COVID-19 booster vaccine candidate, ABNCoV2. The recruitment of subjects ≥65 years of age is taking longer than anticipated, pushing the expected completion of enrollment into the second quarter of 2023 with topline results now anticipated around mid-2023.
In February, Bavarian Nordic announced the acquisition of a portfolio of travel vaccines from Emergent BioSolutions, which includes two marketed vaccines for the prevention of cholera and typhoid and a Phase 3 vaccine candidate for the prevention of Chikungunya. As part of the acquisition, Bavarian Nordic will also take over a manufacturing facility in Switzerland, an R&D facility in USA and a specialty sales force in both EU and the US. The total acquisition price is up to USD 380 million including an upfront payment of USD 270 million and conditional milestone payments of up to USD 110 million. The acquisition is expected to close in the first half of 2023, subject to customary closing conditions, including antitrust regulatory approval.
In February, Bavarian Nordic completed a private placement of ~7 million new shares, raising gross proceeds of DKK 1,642 million. The proceeds will be used together with the Company’s existing cash for the payment to Emergent BioSolutions upon closing of the acquisition.
In March, the Board of Directors appointed two observers to the board with the intent to nominate both for election at the annual general meeting on March 30, 2023, together with Luc Debruyne who has been observer to the board since 2022. The two new observers are Heidi Hunter, MBA, an American national and former President, Cardinal Health Specialty Solutions, who currently serves as member of the boards of Vicore Pharma and Sutro BioPharma, and Johan van Hoof, MD, a Belgian national and former Global Therapeutic Area Head, Infectious Diseases & Vaccines, R&D at Janssen, the pharmaceutical division of Johnson & Johnson, who currently works as independent advisor for the biotech/vaccine industry.
Financial performance
The consolidated, audited financial results for 2022 were in line with the preliminary financial results for 2022 which were announced on January 16, 2023, and which exceeded the latest guidance issued on September 7, 2022. The table below presents the actual, audited financial results for 2022 compared to the original and the latest guidance for 2022.

FY 2022 guidance
original, 04-Mar-2022
MDKK FY 2022 guidance
latest, 07-Sep-2022
MDKK FY 2022 actuals
Audited
MDKK FY 2022 actuals
Audited
MUSD*
Revenue 1,100 – 1,400 2,800 – 3,000 3,151 452
EBITDA (1,300) – (1,000) (200) – 0 328 47
Cash and cash equivalents 1,000 – 1,200** > 1,700** 1,742** 250

* Danish kroner (DKK) is the Company’s reporting currency. The USD figures provided above are based upon an assumed exchange rate of DKK 6.97 per 1.00 USD, which was the exchange rate as of December 31, 2022.
** Guidance assumed a bank debt level of DKK 600 million whereas actual year-end cash position includes no bank debt, as this was repaid during fourth quarter.

Revenue for the full year was DKK 3,151 million, compared to latest revised and upgraded guidance in the interval of DKK 2,800 to 3,000 million. Revenue was comprised of DKK 1,730 million from sale of JYNNEOS/IMVANEX/IMVAMUNE mpox/smallpox vaccine, DKK 879 million from sale of Rabipur/RabAvert, DKK 299 million from sale Encepur, DKK 79 million from sale of third-party products, and DKK 164 million in other revenue.

The operating result (EBITDA) was a profit of DKK 328 million, compared to the latest revised and upgraded guidance in the interval DKK -200 to 0 million.

Cash and cash equivalents at year-end was DKK 1,742 million, compared to latest revised and upgraded guidance of DKK >1,700 million. The guidance assumed a bank debt level at year-end of DKK 600 million, however remaining bank debt was repaid during the fourth quarter.

For a detailed financial review, see the annual report.

Outlook for 2023
For 2023, Bavarian Nordic expects revenue of approximately DKK 6,000 million and an EBITDA of approximately DKK 2,200 million.

Numbers are approximate 2023E
MDKK 2023E
MUSD*
Revenue 6,000 861
EBITDA 2,200 315
* Danish kroner (DKK) is the Company’s reporting currency. The USD figures provided above are based upon an assumed exchange rate of DKK 6.97 per 1.00 USD, which was the exchange rate as of December 31, 2022.

The financial guidance presented above is unchanged compared to the guidance announced in company announcement no. 02/2023 on February 15, 2023 and does not include financial impact from the acquisition of the travel vaccine portfolio from Emergent BioSolutions, which is pending final closing of the transaction and the timing thereof after which the Company will update its full-year guidance.

For a full description of assumptions for the 2023 outlook, see the annual report.

Conference call and webcast
The management of Bavarian Nordic will host a conference call today at 2:00 pm CET (8:00 am EST) to present the full-year results followed by a Q&A session. A listen-only version of the call and presentation slides can be accessed via http://bit.ly/3lSQ92A. To join the Q&A session, please register in advance via http://bit.ly/3IQRBLV.