CK Life Sciences International is set to merge its subsidiary Polynoma with Nasdaq-listed TransCode Therapeutics, in a move expected to boost the pipeline of anticancer drugs, according to the biotech unit controlled by the Li Ka-shing family.
The agreement paved the way for TransCode to acquire the parent company of Polynoma from DEFJ, an indirect wholly owned unit of CK Life, the latter said in a filing with the Hong Kong stock exchange after trading hours on Wednesday.
In exchange, TransCode would issue US$125 million worth of new common and non-voting preferred shares to the parent company of Polynoma, CK Life said. These non-voting preferred shares can be converted to common shares subject to the approval of TransCode’s shareholders and relevant Nasdaq rules.
The share conversion is expected to be completed within the next six to nine months, said Alan Yu, deputy chairman and executive director of CK Life during a media luncheon on Thursday.
CK Life, through DEFJ, also agreed to invest about US$25 million in TransCode to support the continued development of both Polynoma’s lead therapeutic candidate and TransCode’s pipeline.
Upon completion of the transaction, CK Life will own about 9.1 per cent of TransCode’s outstanding common shares. Meanwhile, the full conversion of preferred shares to common shares will give CK Life about a 90.7 per cent stake in TransCode’s outstanding common shares.
CK Life is expected to receive up to US$95 million from TransCode tied to the development of Seviprotimut-L, a proprietary multivalent melanoma cancer vaccine. As clinical trials take time, Yu said the company would not receive the payments immediately.
Geopolitical tensions had little impact on the vaccine because it would be manufactured, researched and developed in the US, he added.
“The transactions represent a pivotal step in our therapeutic cancer vaccine development, creating a strategic pathway to maximise the potential of our entire pipeline,” said Yu in a statement on Wednesday.
“By combining Polynoma with a Nasdaq-listed entity, we gain wider access to capital markets to accelerate development of its lead therapeutic candidate and unlock its value,” Yu said.
“Simultaneously, this sharpens our strategic focus, allowing us to concentrate our resources on advancing our growing portfolio of early-stage, tumour-agnostic cancer vaccines, which we continue to support through our operating businesses.”
Polynoma and TransCode had a complementary pipeline of projects, CK Life added, citing the example of the former’s melanoma cancer vaccine candidate and the latter’s pipeline that focused on metastatic cancer.
“Integrating Polynoma’s therapeutic cancer vaccine, seviprotimut-L, into TransCode Therapeutics’ pipeline of promising RNA therapeutics enables a multipronged attack on cancer,” said Melvin Toh, vice-president and chief scientific officer at CK Life. “The potential synergy between vaccine-driven immunity and RNA-based mechanisms may address the challenge of treatment resistance and achieve more durable patient responses.”
The deal would transform TransCode into a “one-of-a-kind leading oncology company at this critical time,” Philippe Calais, who has been appointed as the company CEO and remains its chairman, said in a separate statement on its website.
“We are grateful for CK Life Sciences’ investment and their support,” he said. “This acquisition allows us to create a unique and broader pipeline with Phase 3-ready seviprotimut-L, and potentially realise synergies between both technologies, for the ultimate benefit of patients suffering from cancer and metastases.”
CK Life Sciences is also collaborating with Shenzhen-based AI-powered drug researcher XtalPi to design and develop cancer vaccines. - SOUTH CHINA MORNING POST
