Destiny Pharma (DEST) , a clinical stage biotechnology company, announced its interim results for H1 2023, alongside an update for the year to date, detailing encouraging headway across both its late-stage assets, XF-73 nasal and NTCD-M3, and a strong balance sheet extending cash runway into 2025.
A North American partnering deal with Sebela Pharmaceuticals was secured in the period for Destiny’s Phase III asset, NTCD-M3, with clinical development and commercialisation in North America are to be financed by Sebela. NTCD-M3 is a microbiome-based biotherapeutic for the prevention of C. difficile infection recurrence. Destiny added that preparations for Phase 3 clinical study are currently underway.
For its lead asset - XF-73 nasal - a recent survey of clinicians and payers in US and EU underscored big global market potential, with a $2 billion opportunity in the US. The survey also confirmed the asset’s superior treatment profile against the current standard of care. Destiny is in active partnering discussions for this asset, with multiple interested global parties.
The company’s balance sheet was improved by a $1million upfront payment from Sebela. In Q1, an equity fundraise generated £7.3m in gross proceeds, which contributed to a net cash balance of £9.8m at the end of the period. The company said its strengthened balance sheet gives cash runway into 2025.
For its earlier stage pipeline, Destiny is co-developing SPOR-COV with SporeGen, a preventative biotherapeutic nasal spray for COVID-19 and influenza. Positive results were observed across multiple preclinical challenge models, with SPOR-COV demonstrating prophylaxis of COVID-19 in SARS-CoV-2 as well as reducing symptoms of severe influenza.
Additionally, the US government's National Institute, Allergy, and Infectious Diseases (NIAID) is funding an extensive and on-going safety study of XF-73 dermal - a topical skin formulation for the treatment of serious wound infections and superficial skin infections caused by bacteria.
View from Vox
Destiny’s H1 results detail a very exciting time for the company, with its cash runway extending into 2025 providing funding through a series of significant value inflection points. This could potentially include the announcement of a partnering agreement and monetisation of XF-73, potentially significantly impacting Destiny’s share price.
There is a huge addressable market for the company’s XF-73 nasal gal, with 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.
Other possible value inflection points across its portfolio include the announcement of a potential partnering agreement for NTCD-M3 outside of North America. Again, the addressable market for NTCD-M3 is huge, with C. difficile infections being the most common type of infection caused by antibiotic use. C. difficile is a major health threat, with an estimated 12,800 deaths in the US per year.
Looking ahead, Destiny said it remains focused on finding partnering opportunities for its XF-73 nasal asset, alongside progressing NTCD-M3 to commencement of clinical studies, all while maintaining tight cost control.
Follow Destiny Pharma for more News and Updates: