AdAlta, a drug company, is looking to raise $10 million with an initial public offering (IPO) on the Australian Securities Exchange. The sum will be used to support trials on AD-114, the company’s lead candidate for the treatment of fibrosis.
Sam Cobb, AdAlta’s CEO, said in a press release that the money will be “deployed to expediate” the drug into Phase 1 human clinical trials – and extend the technology into other diseases.
“Our strategy is to license this drug candidate on completion of the planned Phase 1 clinical studies proposed in the offer. The IPO funding will allow AdAlta to develop AD-114 to a point that will be ready for licensing to a major pharmaceutical company. There is heightened global interest in promising new treatments for fibrosis as well as for the new generations of antibody technologies,” Cobb said.
AdAlta has created an i-body technology platform to develop a pipeline of potential therapies, with an initial focus on treating fibrotic diseases. According to the company website, i-bodies are unique compounds “developed out of the technology platform that mimics the shape and engineers key stability features of the antigen binding domain of shark antibodies into human proteins.”
AD-114 has anti-fibrotic properties and is being developed as a potential therapy for idiopathic pulmonary fibrosis (IPF) and other fibrosis diseases, including eye, liver, skin, kidney and heart fibrosis.
In IPF, AD-114 has completed in vitro (laboratory dish) and in vivo (using living creatures) pre-clinical studies with positive results. In a lung disease mouse model, treatment with the therapy reduced collagen content and inflammatory cell infiltration.
AdAlta is seeking to partner its i-body technology platform with other companies to produce early profits and also to license its drugs at an early stage. The company has no plan to market new drugs developed from its technology itself, and investors will need to wait up to 10 years or more before they see financial gain.
“Our business model of partnering our i-body library and early licensing of our proprietary i-body drug candidates offers both short-term and medium-term revenue opportunities and spreads the risk,” Cobb said.