Reports indicate that AstraZeneca plc (ADR)(NYSE:AZN) is one of the backers of a Swiss biotech firm which is developing anti-drug conjugates needed to fight cancer. In an investment round, ADC Therapeutics, which currently has 66 employees located in both Europe and the United States, raised approximately $200 million. Besides AstraZeneca other investors included the Wild Family Office, Redmile, and Auven Therapeutics among others.
The biotech startup intends to use the money to undertake trials of two hematological cancer assets. Two years ago the biotech firm indicated that it was eyeing a public listing in the future. However, because of the fact that financiers were willing to put up money, the firm decided to forego an IPO for the time being.
High interest
“We looked at public markets. We really had a high level of interest from our existing investors and were approached by some other large private financing investors, so we … really didn’t need to go to the public markets at this stage,” said the chief executive officer of ADC Therapeutics, Chris Martin.
Some of the products that ADC Therapeutics is developing include antibody-drug conjugates which bind monoclonal antibodies with PBD-based warheads. When the PBDs are delivered into the cancerous cells, they bind themselves into the DNA’s minor groove where DNA interstrand cross-links are formed.
It is these cross-links which prevent cell division, consequently killing the cell. PBDs are able to do this without the structure of the DNA getting distorted. This ensures that the repair processes which in normal circumstances would assist the cancer in fighting back remain dormant.
Registrational trials
So far ADC Therapeutics has enough evidence of the efficacy of this mechanism and has now committed to carrying out registrational trials. The assets that ADC Therapeutics intends to take to registrational trials are ADCT-402 and ADCT-301.
If ADC Therapeutics is able to replicate the results it was able to obtain from the early-phase trials, it is expected that the biotech firm will bring ADCT-402 and ADCT-301 to the market as optional therapies for patients who have not met success with other existing drugs.
On Monday shares of AstraZeneca fell by 0.66% to close the day at $34.39.
