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A quick look at CytoMed Therapeutics Pte. GmbH.
CytoMed Therapeutics Pte. ltd (GDTC) has requested to raise an undisclosed amount in an initial public offering of its common stock, according to an F-1 registration statement.
The company is a pre-clinical Biopharmaceutical company developing CAR-T cell treatments for various types of cancer.
CytoMed is still in a pre-clinical development stage, so the IPO is associated with an extremely high risk.
I will provide a final comment when we hear more details about the IPO from management.
CytoMed Overview
Singapore-based CytoMed Therapeutics Pte. ltd was founded to develop novel patient blood cell-independent platform technologies to create so-called “off-the-shelf” immunotherapies.
Management is led by Chairman, Mr. CHOO Chee Kong, who has been with the Company since its inception in March 2018 and was previously Executive Vice Chairman of CNMC Goldmine Holdings and worked at DBS Bank Ltd in Singapore.
The company’s lead candidate, CTM-N2D, “consists of expanded gamma-delta T cells transplanted with NKG2DL-targeting CAR to enhance anticancer cytotoxicity.”
Management is aiming to finalize the details of an initial study by the National University Hospital of Singapore and to begin enrolling the first patients in the second half of 2023.
CytoMed has booked US$7.2 million in convertible debenture and equity investments at fair value as of December 31, 2021 from investors including Glorious Finance Limited, WANG Shu, mDR Limited and ZENG Jieming.
CytoMed market and competition
CAR-T cell cancer treatment is a type of immunotherapy that uses genetically engineered T cells to attack cancer cells. The T cells are modified to express a chimeric antigen receptor [CAR] which recognizes a protein on the surface of cancer cells. This helps the T cells to recognize and kill the cancer cells.
According to a 2018 market research report by Mordor Intelligence, the global CAGR for solid tumor treatments is projected to be 15% between 2019 and 2024.
This is a very strong growth rate as the overall solid tumor treatment market is extremely large, reaching hundreds of billions of dollars annually.
Key elements driving this anticipated growth are increasing government initiatives, new product approvals in ovarian, pancreatic and prostate cancer, and increasing incidence and awareness of cancer.
The research report also states that “cancer rates could continue to rise by 50% to 15 million new cases by 2020, according to the World Cancer Report.”
The most common cancers in 2016 were breast, lung and bronchus, prostate, colon and rectum, and bladder cancer, melanoma of the skin, non-Hodgkin’s lymphoma, thyroid cancer, kidney and renal pelvis cancer, leukemia, endometrial cancer, and pancreatic cancer.
Key competing vendors offering or developing related treatments include:
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The proverb
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age
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AstraZeneca
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BioAtlas
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Bristol Myers Squibb
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CytomX Therapeutics
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MacroGenics
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Other
CytoMed Therapeutics Pte. ltd financial status
The company’s recent financial results are typical of a preclinical-stage biopharmaceutical company, showing no revenues and significant R&D and other expenses related to drug candidate development efforts.
Below are the company’s financial results for the past two years:
Company financial results (SEC)
As of December 31, 2021, the Company had $1.8 million in cash and $2.5 million in total debt.
CytoMed Therapeutics Pte. ltd IPO details
CytoMed intends to raise undisclosed gross proceeds from an initial public offering of its common stock.
No existing shareholders have expressed an interest in purchasing shares at the IPO price, although this element could become a feature of the IPO if announced in a future filing.
Management says it will use the net proceeds from the IPO as follows:
Approximately US$ [2] million or [28.6%] to advance the clinical development of CTM-N2D, including CTA filing, initiation of a Phase I clinical trial and through to the stage of initiation of a Phase II clinical trial;
Approximately US$ [2] million or [28.6%] to continue the technological development of iPSC-gdNKT;
Approximately US$ [1] million or [14.3%] advance the clinical development of CTM-GDT, including the CTX application, for a Phase I clinical trial in Malaysia; and
the remainder to fund other R&D activities, production expansion, working capital and general corporate purposes;
(Source – SEC)
Management’s presentation of the company’s roadshow is not available.
With respect to pending lawsuits, management has not described the status of any lawsuits against the Company.
Public bookrunners for the IPO are The Benchmark Company and Axiom Capital Management.
Commentary on CytoMed’s IPO
GDTC is seeking investments in the US public capital market to advance its pipeline of drug candidates into clinical trials.
The company’s lead candidate, CTM-N2D, “consists of expanded gamma-delta T cells transplanted with NKG2DL-targeting CAR to enhance anticancer cytotoxicity.”
Management is targeting no earlier than late 2023 to enroll patients in its Phase 1 safety study.
The market opportunity for the treatment of solid tumors is extremely large and is expected to grow significantly as the world population ages and becomes more susceptible to cancer due to decreased immune system performance.
Also, historically, Asian countries have had fewer cancer treatments available to treat their populations, and as these populations have increased in income and age, they are demanding better healthcare treatment options.
Management has not disclosed any collaboration agreements or relationships with major pharmaceutical companies.
The Company’s investor syndicate does not include any major life science venture capital firms or strategic investors.
The Benchmark Company is the lead underwriter, and IPOs led by the firm over the past 12 months have generated an average return of 94.5% since going public. This is a first class performance for all major underwriters over the period.
CytoMed is still in a pre-clinical development stage, so the IPO is associated with an extremely high risk.
I will provide a final opinion when we hear more details on the IPO from management.
Estimated IPO Price Date: To be announced.
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