,Destiny Pharma (DEST), a clinical stage biotechnology company, has issued an update on its business development and partnering activities for its lead asset, XF-73 Nasal. Additionally, the company has provided an update on the progress made in the search for a new CEO.

XF-73 Nasal remains Destiny's primary focus for partnering in the upcoming months. The company is actively engaged in discussions with multiple global parties, who have been granted access to the XF-73 data room. Destiny Pharma expects to provide access to several more potential partners in the near future.

Regarding regulatory matters, Destiny Pharma announced in December 2022 that it had reached an agreement with the FDA and EMA on a clinical trial plan. Successful completion of this plan will result in a broad label for XF-73 Nasal, specifically for the prevention of surgical site infections caused by Staph Aureus. This achievement will differentiate XF-73 Nasal from its competitors, enabling more favorable pricing and reimbursement discussions.

Market analysis on XF-73 Nasal, undertaken by Destiny and its consultants between 2018 and 2022, showed a significant potential worldwide market of $2bn for this product.

Finally, Destiny said the search for a permanent CEO is progressing at pace, with discussions being held with a number of potential candidates for the role.

Debra Barker, Interim CEO of Destiny Pharma, said, "Destiny's key priority remains the partnering of our XF-73 Nasal asset as we look to maximise the significant market potential for this product. Good progress continues to be made in commercial discussions, and a number of global players are currently in the XF-73 data room. We anticipate that several new participants will be added over the coming months and a further update will be provided at the time of the Company's interim results in September. The Board and I are highly focused on delivering this objective and are doing everything we can to support the partnering process while maintaining tight cost control."
 

View from Vox 

Destiny’s lead asset, XF-73 Nasal, is a nasal gel used to prevent post-surgical infections. Surgical site infections are serious complications that occur in a significant number of patients post-surgery and can lead to severe life-long morbidities, and in some worst cases, even be life-threatening. 

There is also a huge cost impact on healthcare systems, with surgical site infections costing approximately US$10 billion in the US alone. As such, it's easy to see where the huge medical demand anticipated for Destiny’s XF-73 Nasal gel will come from. 

Approximately 70-90% of post-surgical infections caused by patients’ endogenous pathogens, while the majority of infections are caused by a pathogen that resides in the nose of many of the general population. By preventing post-surgical infections, XF-73 Nasal gel has the potential to reduce hospitalisation stay and accelerate recovery for patients undergoing vital surgeries.

In addition, a European market research report found XF-73 nasal gel to be a highly promising alternative to the current standard treatment, mupirocin. It concluded that XF-73 has the potential to become the preferred nasal decolonisation agent for pre-surgical procedures.

Destiny Pharma remains well funded, with year-end cash of £4.9 million after its balance sheet was further strengthened through a £7.3 million fundraise in 2023, extending its cash runway to H2 2024.

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