ExpreS2ion repositions and gains important ground in the fight against cancer through joint venture
Hørsholm, Denmark, June 28, 2017 – Today, ExpreS2ion Biotech Holding AB announces that the fully owned subsidiary ExpreS2ion Biotechnologies ApS (“ExpreS2ion”) via its ownership in AdaptVac ApS (“AdaptVac”) and the proprietary new Plug-and-Play Virus-Like Particle (VLP) technology, has accelerated the development of efficient therapeutic and prophylactic vaccines within high value segments of oncology, infectious diseases and immunological disorders. This represents a new market focus for ExpreS2ion and a strong repositioning potential due to the shift from being mainly a service provider to also being a developer of vaccines. The risk-adjusted net present value of ExpreS2ion’s stake in AdaptVac’s initial pipeline is estimated to be in the 50-100 million SEK range.
AdaptVac now holds a prototype of breast cancer vaccine
AdaptVac, a joint venture between ExpreS2ion and NextGen Vaccines ApS (NextGen), is dedicated to become a world leading player in the development of highly competitive vaccines and therapeutics for cancer, infectious diseases and immunological disorders. AdaptVac is a 50:50% joint venture between NextGen and ExpreS2ion and will operate as an independent business unit with costs and profits divided equally between the owners. Initially, AdaptVac will focus on two lead projects within oncology and infectious diseases, respectively. This is based on already established studies performed with the licensed VLP technology, where results have demonstrated safety and efficacy in established animal cancer models, leading to a prototype of a breast cancer vaccine. The second indication is not yet disclosed due to patent considerations, but its market value is in the same range as breast cancer.
ExpreS2ion repositions and gains substantial economic boost
CEO Dr. Steen Klysner says: “We expect to create substantial value for ExpreS2ion and its shareholders through the AdaptVac joint venture based on its superior technology platform and a high value pipeline. This joint venture represents a new market focus for ExpreS2ion and a strong repositioning potential, as we move from being mainly a service provider to also being a developer of vaccines. Based on the impressive existing results, I am certain that the therapeutic and prophylactic vaccines from AdaptVac will be important value drivers for the company in the future.”
Strong market potential and value
Breast cancer is a widespread oncology indication affecting more than 1.3 million worldwide annually and resulting in more than 450,000 deaths (Tao, 2015: www.ncbi.nlm.nih.gov/pubmed/25543329). The most common treatment today is based on monoclonal antibodies, where the dominating therapy HERCEPTIN (trastuzumab) on an annual basis generates global sales of US$ 7 billion. While the decade long leadership by HERCEPTIN is expected to come to a halt in light of patent expiries and the introduction of biosimilars, the product profile of AdaptVac’s lead pipeline candidate has the potential to capture market shares, leading to significant sales levels. ExpreS2ion’s Board of Directors estimates a risk-adjusted net present value (rNPV) of AdaptVac’s two lead projects to be more than 100 mio SEK. The value of the rNPV represents the value from forecasted income from milestone payments and royalties of net sales based on an assessment of projected market size, costs for bringing the product to market, and taking into account the risk associated with currently being in the preclinical development stage.
Sedermera Fondkommission is appointed as Certified Adviser for ExpreS2ion.
For further information about ExpreS2ion Biotech Holding AB, please contact:
Dr. Steen Klysner, CEO
Telephone: +45 2062 9908
This press release contains information that ExpreS2ion is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above on June 28, 2017.
ExpreS2ion Biotechnologies ApS, is a fully owned Danish subsidiary of ExpreS2ion Biotech Holding AB with company register number 559033-3729. The subsidiary has developed a unique platform technology, ExpreS2, enabling cost effective development and robust production of complex proteins for new vaccines and diagnostics for e.g. Malaria and Zika. Since founded in 2010, the company has used its patented ExpreS2platform to produce more than 200 proteins in collaborations with research institutions and biopharmaceutical companies, with a superior efficiency and success rate.