Email from CEO of Algernon Pharma - If your on their mailing list you got one today
April 22, 2023
Dear Subscriber:
I wanted to reach out to provide you with some comments on the recent deal announced this week by Glaxo Smith Kline plc (GSK) related to its USD $2B acquisition of the Canadian clinical stage drug development company Bellus Health, and to remind you of some specific Algernon developments as well.
Glaxo Smith Kline Acquisition of Bellus Health
GSK has signed an agreement to buy all of the outstanding shares in Bellus for USD $14.75 per share in cash. The Bellus Health acquisition will boost GSK’s speciality medicines and respiratory pipeline. With the lingering slow down in pharma deal flow, this news is a very big win for the biotech sector and especially for the Canadian drug development space.
In the transaction, GSK will gain access to Bellus’ investigational, twice-daily oral P2X3 receptor antagonist ‘camlipixant’ to treat refractory chronic cough (RCC). It appears that the GSK acquisition of Bellus was based on the results from Bellus’ Phase 2B refractory cough study results.
Bellus Health’s drug is very similar to Merck’s cough drug ‘gefipixant’ except that it has higher specificity for the P2X3 receptor, which is the shared mechanism of action of these two drugs. Blocking this receptor reduces cough by dampening the direct signal caused by irritation of the nerves in the lung.
Algernon’s RCC Drug – Ifenprodil
To remind everyone, Algernon is also investigating a drug for RCC called Ifenprodil and is planning its own Phase 2b RCC study in Q4, 2023.
The data from the chronic cough part of our completed Phase 2a study showed that Ifenprodil, given three times a day for 12 weeks, was able to reduce geometric mean cough counts by nearly 40% from baseline (p = 0.001). The statistical review was conducted by the Company’s lead scientific and medical advisor, Dr. Jacky Smith, a global expert on cough. Dr. Smith is also the lead medical and scientific advisor to both Merck and Bellus Health for their RCC research programs.
“This additional analysis confirms my initial positive impression of the study,” said Dr. Jacky Smith, Professor of Respiratory Medicine at the University of Manchester, and an Honorary Consultant at Manchester University NHS Foundation Trust. “The NMDA receptor has always been an interesting target for cough, but other agents have been poorly tolerated. To see effects of this magnitude in an IPF population, where other drugs have failed to demonstrate a benefit, is notable.”
Ifenprodil is a first-in-class potential treatment of chronic cough and has a novel mechanism of action. Ifenprodil affects central signaling, reducing the urge to cough by binding receptors in the brain rather than in the lung, and therefore we believe has the potential to have additional benefit to the Merck and Bellus Health drugs, as well as to treat patients in whom those drugs may be ineffective. Also of note, in our Covid – 19 study and Phase 2a study of Ifenprodil, there were zero reported cases of taste disturbance, which is a reported issue with the Merck drug.
It is the Algernon team’s belief that Ifenprodil’s potential as a RCC drug holds great promise.
Algernon Rights Offering
I also want to remind you of our rights offering that is currently in progress. This offering provides Algernon shareholders the opportunity to average down on their cost per share and includes a full warrant. We recently issued a news release reminding the market of the offering which can be viewed here: Algernon Rights New Release
The Rights are trading on the Canadian Securities Exchange (the “CSE”) under the symbol “AGN.RT” and will trade until 9:00 a.m. (Pacific time) on or about April 27, 2023. The Rights will expire at 2:00 p.m. (the “Expiry Time”) on April 27, 2023 (the “Expiry Date”), after which time unexercised Rights will be void and of no value.
It is important to note that many intermediaries may have different cut off times prior to the Expiry Date and Expiry Time. As such, the Company recommends that all eligible shareholders who own their Shares through an intermediary contact their broker or financial advisor about the Rights Offering to ensure that they can participate by the intermediary’s cut off time for subscriptions.
Thank you again for your continued support and interest in Algernon Pharmaceuticals. I would also invite you to visit our newly refreshed web site at www.algernonpharmaceuticals.com.
Sincerely,
Christopher J. Moreau Chief Executive Officer
Algernon Pharmaceuticals Inc. #400 - 601 West Broadway Vancouver, BC
T: 604.398.4175
Again I’ll agree with M$ - Algernon CEO the one who claims their just as Bellus Health’s
