SMALL CAP IDEA: Scancell is becoming a key player in cancer immunotherapy

For ambitious junior life sciences companies, often the ultimate goal is to secure partnerships with well-funded industry players to drive drug development toward commercial success.

For many smaller innovators, getting a promising molecule out of the lab through clinical trials and into the market is an enormous challenge that requires significant time and financial resources.

For Scancell Holdingsa UK-based immuno-oncology specialist, this challenge has been met with two notable partnerships potentially worth £940 million ($1.2 billion), both with Danish biotech company Genmab.

Genmab

The latest agreement gives Genmab exclusive global rights to develop and commercialize a monoclonal antibody from Scancell’s GlyMab platform.

Analysts estimate an initial payment of around $5 million, along with milestone payments tied to development, regulatory and commercial milestones. Scancell will also earn royalties on net product sales resulting from the collaboration.

The licensed antibody is one of five in Scancell’s portfolio targeting glycan structures associated with cancer. These partnerships underline the potential of Scancell’s GlyMab platform, although the company’s ambitions extend far beyond these agreements.

SCIB1: Advances in advanced melanoma

Scancell has made significant progress in the development of SCIB1, its lead asset targeting advanced melanoma, a form of skin cancer.

The SCOPE trial, testing SCIB1 in combination with checkpoint inhibitors ipilimumab and nivolumab, has shown promising results in 25 patients.

At six months, 80 percent of participants experienced no disease progression and 20 percent achieved complete remission. The overall disease control rate, including stable disease or tumor shrinkage, was 84 percent, and 72 percent of patients showed significant tumor shrinkage, which improved over time.

These results compare favorably with the results of checkpoint inhibitors alone, which typically achieve a progression-free survival of 65 percent and a complete remission rate of 16 percent. The data suggest that SCIB1 improves both the durability and efficacy of treatment.

Dr Heather Shaw, an oncologist at University College Hospital, London, praised SCIB1 for its potential to improve first-line therapies for patients with advanced melanoma while maintaining a strong safety profile.

Scancell Chief Scientist Professor Lindy Durrant highlighted progression-free survival as a key metric for future trials, stating: “The SCOPE study continues to deliver excellent results with a PFS of 80 per cent and five patients now achieving a complete response.” “.

Advantages of SCIB1

SCIB1 is the only DNA cancer vaccine currently available in development for melanoma. Unlike personalized cancer vaccines, which are tailored to individual patients, commercially available vaccines are expected to be less expensive, easier to manufacture and more readily available.

Analysts at Panmure Liberum have noted the potential advantages of this approach and predict that it could make Scancell a leader in this emerging field. Ease of use is enhanced by collaboration with PharmaJet, a specialist in needle-free injections.

modi-1

In addition to SCIB1, Scancell is advancing Modi-1, another Phase II asset initially targeting renal cell carcinoma (RCC).

Data from the ModiFY study, which combines Modi-1 with checkpoint inhibitors for CRC, are expected in the first half of 2025.

New leadership

Last month, Scancell appointed Dr Phil L’Huillier as chief executive, replacing Professor Durrant.

L’Huillier brings a wealth of experience, having previously led CatalYm, where he advanced products from Phase I to Phase IIb and raised over $200 million.

He has also been involved in the development of multiple biotechnology companies, including Achilles Therapeutics and Blink Therapeutics.

Panmure Liberum welcomed his appointment, saying: “We expect the appointment will add the company’s development expertise to Scancell’s strong scientific foundation and should enable the maturation of the company as it moves to the next stage.”

Last week, L’Huillier got to work by revealing plans to raise up to £9.5 million in new investments made up of new shares being placed at 10.5 pence each that will generate at least £8 £.5m and a stock retail offer.

Together with the cash already in the bank (£9.1m at last count), the company believes it will have sufficient resources to continue development efforts until the end of 2026.

How much is all this worth?

Panmure Liberum rates Scancell shares a “buy”, with a price target of 23.3p, a 65 per cent premium to the current price. The company believes the positive clinical data could prompt a rerating of the stock, especially as awareness grows about the potential of cancer vaccines.

“Growing awareness of the potential of cancer vaccines is translating into a raised profile for Scancell,” Panmure said.

With two major partnerships, a strong pipeline and a new CEO poised to drive its next phase of growth, Scancell is positioning itself as a key player in the competitive and evolving field of cancer immunotherapy.

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