Today, Destiny Pharma announced the publication of XF-73 clinical data in the leading US peer reviewed journal "Infection Control & Hospital Epidemiology". The data has been deemed as a highly statistically significant result.
The company highlights the following key results:
- Achieved the study primary endpoint: XF-73 showed a 99.5% reduction in S. aureus bacterial nasal carriage, which is a clinically relevant reduction in nasal carriage. This equates to a reduced nasal burden of S. aureus in patients undergoing open heart surgery by 2.5 log (CFU/ml) in the 24 hours immediately before surgery, a highly statistically significant result, (p<0.0001)
- 83.7% of XF-73 nasal gel treated patients were completely decolonised of nasal S. aureus or exhibited a ≥99% reduction one hour ahead of surgery compared to just 25% in the placebo group
- These positive results were achieved with just 3 doses of XF-73 nasal gel in the 24 hours before the surgical incision
- XF-73 decolonisation of S. aureus was maintained throughout the perioperative period, which is considered to be when the risk of infection is highest
The U.S. Market
Post-surgical infections create a significant healthcare burden on hospitals and healthcare systems costing $10 billion per year in the US. A single MRSA post-surgical infection costs over $160,000 to treat and adds 15 days onto a hospital stay.
What's Next
XF-73 is the second asset in Destiny Pharma's pipeline. The first NTCD-M3, is a Phase 3 ready treatment for the prevention of C. difficile infection (CDI).
Destiny have just signed an exclusive collaboration and co-development agreement for NTCD-M3 with Sebela Pharmaceuticals® worth up to $570m plus royalties.
Sebela will lead and finance the future clinical development and commercialisation activities of NTCD-M3 in North America. The Company retains the majority of rights for Europe and Rest of the World and Sebela has a minority interest in any income generated in these non-North American territories based on the clinical studies it is funding.
XF-73 Deal Planned This Year
The company are now looking to partner on XF-73 in 2023 to take it through phase III trials.
What's worth noting is that peak sales for XF-73 are projected to be double that of NTCD-M3, at $1 billion. They also own the asset outright so, they deal could be both bigger and more beneficial to them.
What's all this Worth?
Three brokers have published share price targets for Destiny Pharma and they currently stand at:
Equity Development = 267p
Finncap = 285p
Shore Capital = 290p
Current share price = 31p
Summary
Destiny Pharma have two late stage assets, one they have a deal on, NTCD-M3, and XF-73, which they are planning to land a deal on this year. Having just raised over £7m and having no financial burden to progress NTCD-M3 through Phase III trials, Destiny seem to be in a very strong position.
The market seems not to have caught on but should it do so, then according to broker targets, there could be some significant upside.