Faron Pharma making progress in finding potential partners for Clevegen and Traumakine

Faron Pharmaceuticals Oy (LON:FARN) said in its full-year results statement that it is becoming increasingly confident in bexmarilimab, its Clever-1 targeting precision immunotherapy. Clevegen (bexmarilimab), Faron's wholly-owned, novel precision cancer immunotherapy candidate, is in Phase I/II development for difficult-to-treat cancers. READ Faron Pharma says trial on precision cancer drug shows significant efficacy signals The company rapidly expanded its clinical development programme for Clevegen in 2020 and its focus for 2021 will continue to be on the progress of the candidate’s clinical development through Part II and Part III of the MATINS trial and new combination studies, to further develop its understanding of the potential future clinical use and commercial potential. Meanwhile, the company is on track to initiate a Faron-sponsored trial investigating the potential of its intravenous (IV) interferon beta-1a therapy Traumakine to treat the Coronavirus (COVID-19). The company said it is making progress with potential partners regarding both Clevegen and Traumakine, while also exploring funding opportunities to ensure it can continue to progress both products. On the subject of funding, the company ended 2012 with a cash balance of €4.1mln, down from €7.1mln a year earlier, since when the company has raised €15mln through a placing of shares in February 2021. As might be expected of a pre-revenue company, Faron made a loss in 2020; the loss before tax widened slightly to €16.95mln from €13.26mln in 2019, as research & development expenses rose to €13.88mln from 10.24mln. Net cash outflow was €2.8mln in 2020 compared to an inflow of €3.0mln in 2019. Cash used for operating activities increased by €6.0mln to €17.5mln in 2020. This increase was mostly driven by an increase in research & development investments. Net cash inflow from financing activities was €14.8mln (2019: €14.6mln) mainly due to the successful equity placing completed in April 2020. "The past year has been one of the most significant in Faron's history, with rapid expansion of our clinical development programme for bexmarilimab, our novel Clever-1 targeting precision immunotherapy,” said Markku Jalkanen, the chief executive officer of Faron. “Seeing the latest data from the MATINS trial, showing clinical benefit across six different tumour types, has been highly rewarding and gives us great confidence in the future of this next-generation immunotherapy. Our growing understanding of Clever-1 as an immune suppressive molecule and its role in the systemic inhibition of T-cells only adds to our confidence in bexmarilimab and its potential as a breakthrough therapy with broad application for patients with hard-to-treat cancers or those who no longer respond to current immunotherapies,” he added, "I am very pleased that we have been able to support ongoing global research efforts to find the much needed, effective treatments for COVID-19 patients. The science behind Traumakine, our intravenous interferon (IFN) beta-1a, and its potential to prevent multi-organ failure by upregulating the key endothelial enzyme CD73, is compelling. We continue to believe that an intravenous formulation of IFN beta-1a is what patients need, to strengthen the body's own IFN beta signalling - the first line of defence against viral infection - and provide optimal exposure to the lung vasculature,” Dr Jalkanen stated. “With evidence emerging of increased interferon resistance among COVID-19 variants, suggesting the virus is evolving with new ways to evade our innate immune defences, research into the potential of exogenous interferon to reduce severe disease and mortality in COVID-19 patients remains critical,” he said.