Vis børsmeldingen
therapeutic treatment for prostate cancer as well as other potential indications
related to abnormal cellular iron regulation. The transfer is subject to final
agreements.
This Project is a result of HBC’s core R&D focus on the health benefits of its
products and ingredients resulting from gene expression modulation mechanism of
action (GEMM™)
Further discovery work at HBC has resulted in several potential pharmaceutical
drug leads, as summarized in the 5th November 2021 stock exchange notice (New
potential pharmaceutical drug lead by HBC)
(NewsWeb) and the Project was derived from
peptides contained in ProGo® (also known as SPH - Soluble Protein Hydrolysate).
From these peptides two lead peptide candidates for preclinical trial work have
been identified and these lead peptides have been modified to enhance their
overall profile.
HBC will transfer a provisional patent and a patent application to HBCI and will
provide a license to use certain of HBC’s intellectual property in the oncology
space. In exchange for these contributions, HBC will receive 75 % of the initial
equity shares in HBCI.
Dr. Bomi Framroze, who is the Chief Scientific Officer at HBC, will through his
company, GPH Biotech LLC., also contribute relevant IP to HBCI for the Project
and will in exchange for this IP own 25 % of the initial equity shares in HBCI.
HBC and HBCI will also enter an agreement under which HBCI will lease certain
personnel that are considered key for the positive development of the Project at
cost. HBCI will grant options to certain personnel of HBC that will contribute
to the Project as well establish a stock option program for future employees,
directors and consultants that shall vest over a four-year period.
Following the initial share issuances and equity grants, it is contemplated that
HBCI shall seek to consummate financing from external investors on terms
mutually agreeable to HBC and GPH Biotech LLC. HBC expects to continue to hold
more than 50 % of the equity in HBCI on a fully diluted basis following the
first two rounds of external financing.
While HBC expects to continue to own a majority of the issued shares and
financial interest in HBCI, corresponding to its ownership share, HBCI will not
be consolidated with HBC for accounting purposes.
HBC has consulted external advisors, GPH Biotech LLC. and other key stakeholders
and concluded on an initial value of HBCI including transferred IP of MUSD 12.5
based on a risk-adjusted royalty method. HBC has booked approx. MNOK 1.8 in
costs on the patent and patent application as of 31 December 2022. This means
that the spin-off of the Project to HBCI will generate approximately 21 MNOK in
financial gain for HBC in Q2 2023.
The current status of the Project is that HBC has successfully completed the
invitro analysis of the newly identified individual peptides that modulate iron
metabolism in prostate cancer cells, in combination with standard of care
hormone therapy (bicalutamide and enzalutamide) to enhance the kill rate of
prostate cancer cell lines representing different stages of prostate cancer. The
initial results were published in Marine Drugs (28 March 2022) and the completed
in-vitro work was presented at Pharma R&D, February 2023.
HBC considers that the spin out of the Project into a separate entity in the US
increases the likelihood of succeeding with developing commercial applications
of the Project. HBCI’s close proximity to Stanford University and the Bay Area,
California, should facilitate access to competent personnel and R&D resources
and future funding.
Jon Olav Ødegård, HBC CEO, said: “I am delighted to see that after years of hard
discovery science work from Professor Bomi Framroze and his team, we are now
starting a new journey to demonstrate the possibility of finding novel
pharmaceutical drug leads for large areas of unmet health needs in Oncology. At
HBC, we believe the sustainability story is second to none. Particularly if we
are able to show we can take fresh Atlantic salmon by-products, that some would
regard as waste, and turn them in new drugs. It has been an ambitious goal, but
we now see extraordinary potential from the early published data on the co-
therapeutic efficacy of our peptides taken with existing “best-standard-of-care”
(BSC) in early and late-stage Prostate Cancer. The idea is for this peptide to
improve quality of life, extend life and indeed help reduce overall mortality in
Prostate Cancer patients.”
Dr. Bomi Framroze, HBC CSO, said: “Cancer iron metabolism is becoming
increasingly recognised as an important driver of tumour growth and spread and a
means by which cancers escape from the effects of treatment. The modulation of
FTH1 with our peptide lead structures holds an exciting potential to enhance the
effectiveness of cancer therapy to improve the health and wellness of cancer
patients.”
For further information, please contact:
James Berger, CCO at HBC
Phone: +41 79 950 1034
E-mail: jb@hofsethbiocare.no (mailto:jb@hofsethbiocare.no)
Jon Olav Ødegård, CEO at HBC
Phone: +47 936 32 966
E-mail: joo@hofsethbiocare.no (mailto:joo@hofsethbiocare.no)
About HBC:
HBC is a Norwegian consumer and pet health ingredient supplier and an incubator
for new pharmaceutical drug leads. Research is ongoing to identify the
individual elements within its ingredients that modulate inflammation and the
immune response with pre-clinical studies ongoing in multiple clinics and
university research labs. Lead clinical and pre-clinical candidates are focused
on developing an oral treatment for inflammatory disease driven by eosinophils
(a type of white blood cell). Clinical trial work with the oil is ongoing to
ameliorate lung inflammation in eosinophilic asthma and COPD (“smokers lung”) as
well as in COVID. Other leads are focused on the protection of the Gastro-
Intestinal (GI) system against inflammation (including ulcerative colitis and
the orphan condition necrotising enterocolitis) and using a special formula of
soluble protein hydrolysate (SPH also known as ProGo®) as a Medical Food to help
treat IBD, and for Iron Deficiency Anemia.
The company is founded on the core values of sustainability, optimal utilization
of natural resources and full traceability. Through an innovative hydrolysis
technology, HBC can preserve the quality of the lipids, proteins and calcium
from fresh salmon off-cuts. HBC’s headquarters are in Ålesund, Norway with
branches in Oslo, London, Zürich, Ningbo, New Jersey and Palo Alto.
HBC is listed on Oslo Børs with ticker “HBC”. More information about HBC at
hofsethbiocare.com
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to MAR article 17 and section 5-12 of the Norwegian Securities Trading
Act.
Kilde
