Destiny Pharma jumps on 2022 progress

The AIM-traded firm said that in line with its strategy, during 2022 it was focussed on securing a commercialisation partner for NTCD-M3, its lead asset for the prevention of clostridium difficile infection (CDI) recurrence.

That process resulted in Destiny entering exclusive negotiations with an unnamed US-based pharmaceutical company, following the agreement of heads of terms.

The company said the parties were “working constructively” to close the transaction and announce a collaboration early in 2023.

“Whilst there can be no guarantee that these partnering negotiations will complete, nor as to the final terms of a partnering agreement, the headline terms as currently agreed state that all future clinical development and commercialisation of NTCD-M3 in the US will be funded by the partner,” the board said in its statement.

“The board believes these proposed terms, providing for security of final clinical development funding, mean that Destiny's investment in NTCD-M3 will be significantly more valuable without the requirement to contribute towards the funding of the final clinical programme.”

Looking at XF-73, meanwhile, Destiny Pharma said that in 2022 it had also defined the US and EU phase-three clinical development plan for XF-73 nasal, which it described as a “novel nasal gel” for the prevention of post-surgical infections.

Destiny said it was now running an active partnering campaign with some early discussions already underway.

The target was to secure a commercialisation partner for the XF-73 Nasal programme in 2023.

For both lead clinical programmes, the company said it was seeking to close partnerships with pharmaceutical companies that could lead the commercialisation of NTCD-M3 and XF-73 Nasal in key markets, as well as contribute to the funding and design of the required phase-three clinical trials.

Good progress was also made on the company's earlier preclinical pipeline programmes, with 2022 ending with two active dermal infection projects running in the US and China, and with the completion of the ‘SporCov’ Covid-19 grant-funded collaboration.

Further updates on those projects would be announced in the first half of 2023.

“The board remains fully focused on delivering a comprehensive partnering deal for NTCD-M3, our lead asset, early in 2023 and we are working with the counterparty to achieve this,” said chief executive officer Neil Clark.

“We are also very excited to finalise our phase-three plans for XF-73 Nasal and intensify partnering discussions now that we have detailed regulatory feedback.

“Our aim is to end 2023 having secured partners for both of our lead assets to complete their final phase-three clinical studies, registration and approval in key markets - especially the United States.”

At 1330 GMT, shares in Destiny Pharma were up 20.3% at 40.3p.

Reporting by Josh White for Sharecast.com.