C4XD is developing its own pipeline of drug discovery programmes. The addiction programme’s lead candidate, a selective OX1 antagonist, is in formal preclinical studies. Two further programmes are expected to show preclinical proof of concept by the year-end. The proprietary technology platform enables improved and accelerated drug discovery based on conformational design of solution structures. Collaborations with pharma and research companies on novel drug programmes provide both platform validation and steady, albeit modest, revenues (£0.6m in 2014).
C4XD has identified multiple drug candidates, which it believes have potential to be ‘best-in-class’. Its pipeline is focused on addiction, diabetes and COPD. The addiction programme’s lead candidate, a selective OX1 receptor antagonist, should enter Phase I by end-2016. The other two programmes, targeting GPR142 for diabetes and NRF-2 for inflammation (applications in COPD and MS), are in earlier stages of development; C4XD will seek to partner after early clinical trials
C4XD’s nuclear magnetic resonance (NMR)-based technology platform can identify conformational features of drug molecules that are critical to target binding and can be optimised to improve drug potency. The information should enable the selection of more selective, and therefore safer and better, novel leads. This is achievable on a significantly accelerated timescale, with estimated cost savings of up to 90% compared to conventional approaches. These benefits are ever more relevant, against a backdrop of rapidly rising drug costs, with drug companies facing growing pushback from payers and governments.
C4XD receives modest revenues (£0.6m in 2014) through collaborations with AstraZeneca (2012), Takeda (2014) and Evotec (2014). These deals provide endorsement of C4XD’s technology. C4XD hopes to add further collaborations y-o-y, aiming for six to eight in total by end-2017.
Following an £11m (gross) IPO on AIM, C4XD is well positioned to continue nearterm pipeline development, while also generating new business through further collaborations. C4XD guides that end-H115 cash of £9.4m should be sufficient to fund operations into 2017. The EV of just £12m appears undemanding given its long-term growth prospects.