Ladenburg Thalmann downgraded Anchiano Therapeutics (NASDAQ:ANCN) to “neutral” from “buy” without a price target after the company discontinued its Phase 2 Codex program to focus on its preclinical pan-RAS inhibitor. The stock closed at $1.92 on Nov. 15.
The Codex study was evaluating the inodiftagene vixteplasmid gene therapy in bacillus Calmette-Guérin-unresponsive non muscle invasive bladder cancer. Based on an in-depth analysis of initial data, the results indicate a low probability of achieving an efficacy profile that would support regulatory approval or be competitive, compared with other programs in development, writes analyst Matthew Kaplan.
“We believe, given the lackluster complete response results observed in the initial data, Anchiano is taking the prudent approach in discontinuing the Codex study and in re-evaluating any continued investment in the inodiftagene program,” he added.
Mr. Kaplan said Anchiano has established an exclusive worldwide collaboration and option to license agreement with closely-held ADT Pharmaceuticals to develop small-molecule pan-RAS inhibitors and PDE10/beta-catenin inhibitors for the treatment of cancer.
“We believe RAS represents an attractive target as it is a validated target and mutations in the RAS family (KRAS, HRAS, and NRAS) are present in about 30% of all cancers,” Mr. Kaplan said. A pan-RAS-targeted therapy, with activity regardless of RAS isoform or mutation, would have the potential for activity in a broad range of tumors including lung, colorectal, pancreatic, melanoma and bladder cancer.
He said the pan-RAS program is currently at the lead optimization stage of development and is expected to take approximately 12-to-18 months to be in position to initiate IND enabling studies, which typically take approximately 12 months to complete. “In other words, it should take approximately two and a half years for the pan-RAS program to progress to the clinic and an additional six-to-12 months until initial clinical data,” he added.
