While the S&P/ASX 200 Index (ASX: XJO) is slipping today, the Australian clinical-stage drug developer Noxopharm Ltd (ASX: NOX) is bucking the trend with its shares rising.
At the time of writing, the Noxopharm share price is up 14.13% to 52 cents.
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Why is the Noxopharm share price increasing?
Cancer drug update
Noxopharm released a shareholder update to the market this morning pertaining to its drugs in development.
In the update, Noxopharm states that its immunotherapy drug, Veyonda, is emerging as a major new treatment. The company goes on to describe the potential value as 'multi-billion dollar', based on its ability to boost the effectiveness of all 3 current methods of cancer treatment: immune-oncology therapy, radiotherapy, and chemotherapy.
The immunotherapy drug is currently undergoing various testing by IONIC, LuPIN, and DARRT-2 to assess its ability in different applications.
Noxopharm has also advised that its NOXCOVID trial is progressing as planned. The aim of this drug is to block the cytokine release syndrome in COVID-19 patients, preventing deaths and long-term disability. The company foresees the trial to likely expand as COVID-related deaths rise across Europe.
Positioning for commercial transactions
Noxopharm later mentioned that it believes its leading position in restoring immune function to tumours will translate shortly into commercial discussions. Due to this, the company is building an in-house business development capability to meet this opportunity.
Future plans
Noxopharm detailed 2 programs it is focusing on for its drug pipeline for 2021. The first being treatments for pancreatic carcinoma and cholangiocarcinoma. The second being treatments for brain cancers, based on the inhibition of metabotropic glutamate receptor activity.
The company is expected to have identified lead drug candidates and be underway with standard pre-clinical testing programs by mid-2021.
Lastly, Noxopharm has elaborated on the new subsidiary, Pharmorage Pty Ltd. The purpose of the new entity is to build upon an existing drug that was found to be potentially useful in treating cytokine release syndrome and septic shock. Pharmorage has reportedly initiated a number of drug discovery programs which will be reported on progressively throughout the year.
The Noxopharm share price has gained 102% over the last 12 months.
