Appili Therapeutics Inc., the Halifax drug-discovery company that listed its shares in Toronto last spring, has acquired the rights to develop a new anti-fungal drug candidate from a Japanese drug company.
Appili issued a statement Thursday saying it has signed an agreement with Fujifilm Toyama Chemical Co. of Tokyo to develop an anti-fungal drug that can be used to fight such hard-to-cure afflictions as cryptococcal meningitis and candida infections.
The statement said Appili will have exclusive worldwide rights outside Japan to develop and commercialize the drug, which is now known as ATI-2307. Fujifilm Toyama will receive milestone payments and, once the drug is available to the public, royalties from sales.
“Appili has demonstrated deep expertise in accelerating anti-infective drug development that is well aligned with Fujifilm Toyama Chemical’s focus on innovative R&D in the area of infectious disease,” said Fujifilm Toyama president and chief operating officer Junji Okada in the statement. “Fujifilm Toyama Chemical is committed to solving public health issues through innovation, high-value drug development, and accretive partnership. We are confident that Appili is the right partner to help maximize the potential of ATI-2307 and address the urgent threat of invasive and difficult-to-treat fungal infections.”
Appili was launched four years ago with the goal of developing a portfolio of drug candidates and bringing them to the market. In June, the company listed its shares on the TSX Venture exchanges, and one reason for the listing was that it would give the company the financial flexibility to make acquisitions and diversify its drug portfolio in the future.
The company was already working on two drug candidates: a fast-tracked drug candidate called ATI-1501, which treats clostridium difficile infection, or CDI, in children; and ATI-1503, which will take longer to develop but aims for a larger market -- addressing antibiotic-resistant viruses.
The new addition to the Appili portfolio is ATI-2307, a “novel broad-spectrum antifungal” that has qualities allowing it to treat diseases that have proven resistant to existing drugs. The Japanese company took the drug candidate into clinical development and completed three Phase I clinical trials that showed humans can take the drug without adverse effects.
Appili chief development officer Armand Balboni said in the press release that existing anti-fungal agents are toxic for many patients and their outcomes are poor. He added there are not enough anti-fungal drugs even though the aging population and other factors have meant the risks of fungal infections are increasing.
“Appili was founded with the purpose of identifying, acquiring, and rapidly advancing the most promising anti-infective technologies,” said Appili CEO Kevin Sullivan. “The acquisition of this highly differentiated, clinical-stage program added immediate incremental value to the company and is an exciting step forward.”
Appili shares have lately had their best week since the listing in June. The shares rose 48 per cent over eight days to close Wednesday at 59 cents. However, they are still trading below the 80-cent mark they closed at on their first day of trading in June. The company now has a market capitalization (the total value of its shares) of $19.8 million.
