OREANDA-NEWS. SalvaRx, a biotech company focused on therapies that leverage the immune system to fight cancer, is pleased to announce its proposed application for admission of its Ordinary Shares to trading on the AIM of the London Stock Exchange.  Dealings are expected to commence on AIM on 22 March 2016 following the completion of a reverse takeover of 3Legs Resources plc.  Northland Capital Partners acts as Nominated Adviser and Broker to the Company, with Peterhouse Corporate Finance acting as Joint Broker. 

Highlights:

·     SalvaRx's strategy is to acquire, invest in and operate a portfolio of companies involved in the fast-growing cancer immunotherapy market, providing a significant potential upside and managed risk;

·     SalvaRx, via its ownership of iOx Therapeutics Limited ("iOx"), is currently developing a series of compounds, with the lead compound funded through to the end of phase II development via a collaboration agreement with the University of Oxford;

·     iOx's technology was discovered at the University of Oxford in conjunction with the Ludwig Institute for Cancer Research  ("Ludwig Institute");

·     SalvaRx's team has a proven track record of technical drug development in the area of immunotherapy including corporate commercial experience most recently at Bristol-Myers Squibb and Johnson & Johnson;

·     Immunotherapy is a fast-growing and new therapeutic area within oncology, the immuno-oncology market is expected to grow to $80 billion worldwide by 2020; and

·     SalvaRx is actively screening complementary additional acquisitions and investments in cancer immunotherapy.

 Ian Walters, proposed CEO of SalvaRx, commented:

"The listing of SalvaRx on AIM is the next step in growing our business, helping us as we seek to assemble a diverse portfolio of immunotherapy assets.  Our strategy allows the Company's funds to be used directly in developing compounds to a value inflection point, whilst also building a wider pipeline through select acquisitions.  It is low cost and flexible, but still gives us access when needed to a significant pool of talent that is at the forefront of developing immune-oncological therapies.  It is only through truly collaborative efforts such as iOx that we will be able effectively to better the lives of people through suitable therapeutic alternatives to traditional cancer medication."

Background

SalvaRx was founded in 2014 and incorporated in 2015, to develop therapies within the rapidly growing immuno-oncology space, which uses treatments designed to boost the body's natural defences to fight the cancer.  

Historically, standard chemotherapy seeks to eradicate tumours through treatments which are toxic to all cells they come into contact with.  This approach does not target the underlying biology of the disease and, through targeting healthy as well as cancerous cells, is characterised by significant and damaging side effects. 

Instead, cancer immunotherapies use the patient's own immune system to fight cancer.  This is done by enabling the host immune system to recognise and destroy cancer cells.  Immunotherapies can either induce, enhance, or suppress an immune response as required.

Market

Immuno-oncology therapy is a fast growing and new therapeutic area, which is expected to grow to $80 billion worldwide by 2020 (Global & USA Cancer Immunotherapy Market Analysis 2020).  Immuno-oncology seeks to use a patient's own immune system to fight cancer, either by stimulating the existing immune system or by the administration of man-made immune system proteins.  It is expected that 60% of all cancers in the developed world will receive some form of this therapy.

Strategy

There is high clinical demand for immuno-oncology therapeutics that stimulate the immune system to fight cancer, and such therapeutics are in high demand from large pharmaceutical companies affording increased opportunity to license or sell compounds.  Therefore, SalvaRx's strategy is to invest in a portfolio of companies involved in novel cancer immunotherapies and develop them through clinical proof of concept.  SalvaRx provides portfolio companies with operational support in addition to capital, either by managing its portfolio companies directly or augmenting an existing team. This model of partnership is generally attractive to early stage companies or academic collaborators. SalvaRx's strategy uses a low-cost, virtual drug development model, utilising existing R&D resources within its portfolio companies and calling on the services as needed of the wide range of experience and talent it has built up from within the immunotherapeutic sector.

iOx

In 2015 SalvaRx acquired a 60.5% interest in iOx.  iOx is developing, under licence from the Ludwig Institute, a series of small molecules for cancer immunotherapy.  These compounds activate iNKT cells which preclinical testing in several cancer models suggests can inhibit the growth of tumours.  These compounds are supported by three different patent families.

iOx has a clinical trial sponsorship agreement with the University of Oxford to fund the first in human Phase I/II clinical trial for its lead compound.  This agreement is expected to significantly reduce the costs to SalvaRx as the drug moves through the clinical trial process and towards commercialisation.  iOx aims to test the lead compound as both a monotherapy and in combination with backbone immunotherapies, allowing for more profound clinical benefit and a wider potential market.

Management

SalvaRx has a strong management team with a proven track record of discovering and commercialising drugs in the area of cancer immunotherapy.

Dr. Ian Walters (CEO) and Dr. Robert Kramer (CSO) held senior roles within the oncology department of Bristol-Myers Squibb, where they were heavily involved in the development of more than eight oncology compounds, including OPDIVO® (nivolumab), YERVOY® (ipilimumab), and EMPLICITI™ (elotuzumab).  OPDIVO® and YERVOY® are the backbone therapies for the management of cancer through the modulation of the immune system.

Ian Walters and Rob Kramer have assisted iOx in identifying appropriate individuals to form a scientific advisory board and join the board of directors.  The board of directors of iOx comprises Ian Walters and:

Vincenzo Cerundolo MD PhD, who is the Professor of Immunology at the Weatherall Institute of Molecular Medicine, University of Oxford. Professor Cerundolo's work in immunotherapy has led to the development of the iNKT agonists on which SalvaRx's compounds are based;

Declan Doogan MD, previously Senior Vice President and Head of Worldwide Development at Pfizer at the time of multi-billion dollar programmes such as Viagra and Lipitor;

Jonathan Skipper PhD, who is Executive Director of Technology Development at the Ludwig Institute; and

Annalisa Jenkins MBBS, MRCP, who is currently CEO at gene therapy company Dimension Therapeutics, Inc., which floated on NASDAQ in October 2015.

SalvaRx is further supported by an extended network of senior academic and industry executives.  The Company will leverage this network to help develop robust strategies to rapidly de-risk development programs, seek commercial and scientific inputs to enable licensing and partnering discussions with suitable pharma and biotech companies.

SalvaRx benefits from an investment by Jim Mellon who, with his experience of investing in the life sciences sector, and as Non-Executive Chairman will bring further commercial understanding to the Company and the Board as a whole.