Exscientia takes full control of cancer drug program By Investing.com

OXFORD, England – Exscientia plc (NASDAQ: EXAI), a company specializing in artificial intelligence-driven drug discovery, has announced its acquisition of full ownership of the oral CDK7 inhibitor program from GT Apeiron. This strategic move grants Exscientia complete rights to GTAEXS617, referred to as ‘617, and its associated intellectual property.

The ELUCIDATE trial, a two-stage clinical study, is currently evaluating ‘617 for its safety and effectiveness in treating advanced solid tumors. The monotherapy dose escalation phase is on schedule, with results expected in the second half of 2024.

The subsequent phase, set to begin between late 2024 and early 2025, will explore the drug’s efficacy in combination with other therapies, initially targeting HR+/HER2- breast cancer patients.

David Hallett, Ph.D., the interim CEO and Chief Scientific Officer of Exscientia, expressed optimism about the potential of ‘617, highlighting its design through AI to achieve a potent and selective compound with balanced properties. The company anticipates that ‘617 could significantly improve patient outcomes by addressing the limitations of current CDK inhibitors.

Financial terms of the agreement with GT Apeiron include a $10 million upfront cash payment, $10 million in upfront equity, and future single-digit royalties on commercialization of ‘617. Despite these expenditures, Exscientia expects its cash runway to extend well into 2027.

The ELUCIDATE trial encompasses various solid tumors, such as head and neck, colorectal, pancreatic, non-small cell lung, breast, and ovarian cancers. The primary efficacy endpoint for the expansion phase will be the objective response rate (ORR).

In other recent news, Exscientia, an artificial intelligence-driven drug discovery firm, has expanded its collaboration with Amazon (NASDAQ:) Web Services (AWS). The partnership aims to leverage AWS’s AI and machine learning services to enhance Exscientia’s drug discovery and automation platform.

This move is expected to expedite the drug discovery process and reduce costs by harnessing generative AI models and AWS’s scalable infrastructure.

Furthermore, Exscientia’s platform, integrated with AWS technologies, is poised to explore chemical spaces more efficiently and synthesize and test promising drug candidates using advanced robotics.

In addition to this, Exscientia has received a Buy rating from TD Cowen, which initiated coverage on the company’s stock. This endorsement is based on Exscientia’s innovative AI platform and its pipeline of next-generation oncology assets.

The firm anticipates the initial Phase 1/2 data for Exscientia’s CDK7 inhibitor ‘617, expected in the second half of 2024, to be a pivotal moment for the company. Additionally, TD Cowen anticipates two more Investigational New Drug applications by the end of 2024, offering multiple opportunities to validate Exscientia’s platform in the next two years.

InvestingPro Insights

Exscientia plc (NASDAQ: EXAI) is making bold strides in the AI-driven drug discovery sector with its recent acquisition of the CDK7 inhibitor program. As the company advances its ELUCIDATE trial, investors are closely watching the financial health and growth prospects of Exscientia. According to InvestingPro, the company holds a market capitalization of $682.42 million, reflecting investor sentiment and market confidence in its innovative approach.

The financial landscape of Exscientia is characterized by a notable cash position, as the firm holds more cash than debt on its balance sheet, providing it with a solid foundation for funding ongoing research and development activities. Additionally, the company’s liquid assets surpass its short-term obligations, ensuring financial flexibility in the near term. However, it’s important to note that Exscientia is not expected to be profitable this year, and it has been quickly burning through cash, which is a crucial consideration for investors.

Despite the challenges, analysts have a positive outlook on the company’s sales growth for the current year, and two analysts have revised their earnings upwards for the upcoming period. This optimism is reflected in the strong return over the last three months, with a 23.85% price total return, signaling growing investor confidence. Nevertheless, the company’s gross profit margins remain weak, which could impact its long-term profitability.

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