BioWorld International Correspondent

LONDON - Astex Therapeutics Ltd. is teaming up with the Multiple Myeloma Research Foundation (MMRF) in an agreement that will see the charity award up to $1 million and provide access to clinicians and patients, to carry out Phase II development of AT7519, a cyclin-dependent kinase inhibitor.

This is Astex's third such deal with a medical research charity, and brings to £10 million (US$14.1 million) the total charitable funding it has attracted for clinical trials of its drugs.

"As with many other biotechs, we are trying to survive the nuclear winter caused by the financial crisis," CEO Harren Jhoti told BioWorld International. "We have been talking to foundations and charities with an interest in specific tumor types. They can help bridge the funding gap, but they also provide world class expertise in their area."

The dearth of action in the capital markets is forcing other UK biotechs to look to charitable funding to help eke out scarce resources. An example is the botanicals specialist Phytopharm plc of Godmanchester, UK, which last month said it is making a targeted effort to raise money from this source for the further development of Cogane, a Parkinson's disease treatment, and Myogane for motor neurone disease.

Phytopharm, which previously attracted funding for Cogane of $1.6 million from the Michael J Fox Foundation, noted that one attraction of charitable awards is that they are nondilutive.

Jhoti agreed that the benefits of getting support from charities go beyond the funding itself, saying there is evidence that it impresses potential pharma partners. "In cancer there are so many compounds out there that pharma has a huge amount of choice. Having the backing of a patient-focussed charity is a significant validation."

Medical charities are following the progress of products in development with a keener eye in most cases than potential pharma partners, and furthermore they are agnostic about what kinds of compounds or treatments they are, Jhoti said. "They can look across a broader range because they are not restricted by what's in the portfolio already, or by existing fields of expertise."

Indeed, Astex was poised to approach MMRF, when the charity got in touch to request a meeting with the company, having seen a poster presentation about AT7519.

Nor do the charities slouch when it comes to due diligence. "They do a good level of due diligence on the asset, though maybe are less concerned about issues like scale-up and manufacturing that concern pharma. But at the end of the day, their remit is to provide new therapies, so they do take an interest," Jhoti said.

Astex is exploring options to work in a similar way with the U.S. National Cancer Institute. Its existing relationships are with Cancer Research UK, which is working on preclinical and clinical development of AT13148, a protein kinase B inhibitor and carrying out two clinical studies on AT9283, a multitargeted kinase inhibitor in pediatric and adolescent cancer patients, and with the National Cancer Institute of Canada, which is supporting trials of AT9283 and AT7519.

At the current burn rate, Cambridge, UK-based Astex has sufficient funding until the end of 2010, and is optimistic that traditional liquid sources of funding will be available once again before then.

Attracting charitable funding is an alternative to early partnering for a company like Astex whose fragment-based drug discovery platform generates significant numbers of compounds. "In any environment, it is challenge to get [clinical development of] many of them funded, Jhoti said. "This allows us to continue to develop all of our assets."

AT7519 has completed a Phase I trial in solid tumors and is being tested in a second Phase I trial in solid tumors using a different dosing schedule. The small molecule has shown significant antitumor activity in preclinical models of multiple myeloma.

Astex will get $500,000 up front from the MMRF for a Phase II trial, with another $500,000 to come at a certain trigger point if the data coming out of the trial are positive.

Published  March 4, 2009