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Theratechnologies Inc T.TH

Alternate Symbol(s):  THTX

Theratechnologies Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies addressing unmet medical needs. It markets prescription products for people with human immunodeficiency viruses (HIV) in the United States. The Company's research pipeline focuses on specialized therapies addressing unmet medical needs in HIV, nonalcoholic steatohepatitis (NASH) and oncology. Its medicines include Trogarzo and EGRIFTA SV (tesamorelin for injection). Trogarzo (ibalizumab-uiyk) injection is a long-acting monoclonal antibody which binds to domain 2 of the CD4 T cell receptors. It blocks viral entry into host cells while preserving normal immunologic function. The Company is also investigating an intramuscular method of administration of Trogarzo. EGRIFTA SV (tesamorelin for injection) is approved in the United States for the reduction of excess abdominal fat in people with HIV who have lipodystrophy.


TSX:TH - Post by User

Comment by qwerty22on Jun 23, 2021 8:03am
83 Views
Post# 33433138

RE:RE:RE:Needs the hard data still

RE:RE:RE:Needs the hard data still

I wonder to what extent Pharma dollar are a driver of a lot of these blue sky science programs and over-priced early stage companies. The guys at Barclay's might be good with the science but I wonder to what extent their decision to look at particular types of tech or particular companies in the huge mass of scientific ideas that exist isn't driven by where the various ways Pharma support particular boffin's academic research, the various seed money and venture fund's that are supported by Pharma dollars. As a science guy my problem is I look at every science idea and think it's great, picking winners from that is the hard part.

It is just interesting to look at Bioalta's history. They started out 20 years ago as academics and in a different company looking at bulk protein's for the food industry and animal fed. Maybe the opposite end from targeted cancer. Then they were looking at how to stabilize protein in the acid conditions of an animal's stomach. From a quick scan of that early work my initial thought was less that it was ground breaking new science and more that they committed themselves to work that generated huge amounts of data that they sifted through to come up with their winning molecules. I'm sure there were genius moments along the way but the science itself is not all that complicated once you see what is at the heart of it. Maybe one genius move was to apply what they learnt about protein in acidic animal stomachs to acidic tumours, generate some fresh IP for the tech in cancer and then spin out Bioalta. Early 2019 Beigene, a Chinese Pharma came in while they were still a private company with $20 mil upfront and a commitment to invest 100's mils $$ to the clinical development, the company has an IPO to raise $100 mil more. It would be interesting to know when Barclay's stepped in to cover the company. After Beigene and the IPO $$'s had already earmarked this for success?

More generally I don't think THTX has any of these things and they shouldn't be expected to have them (yet). If you think about the Trogarzo and Katana deals then the role THTX is playing is as a (low rent) Pharma. Picking up crumbs the big guys don't want or don't spot. They don't have world class boffin's with cutting edge ideas that Pharma can buy in to early, they have assets they need to execute on to grow value to either generate revenue or sell on. I think all they have in that scenario is execution and milestones until they get to the point were they can't be ignored. Trogarzo failed commercially so they didn't get to that point with that asset. The cancer preclinical has been executed very well but the human data is really the launch pad. I think Palinc saying thtx bought a lottery ticket with Katana is to some extent true. As a low rent Pharma they have one or two tickets they can buy and they don't have the dollars to buy the best.

I thought one of the more interesting Qs from the KOL event was why nobody else is interested in Sortilin. It's completely true that Sort as a cancer marker is in it's infancy compared to other targets, there's a lot of uncertainty that flows from that. They could have mentioned the Swedish startup even though they are pre-preclinical (I don't think they even announced their lead molecule). They have have Euro Pharma $$ supporting their spin out from academia. They might blow past THTX in terms of valuation because of that but they'll be behind them in clinical development. It might have been worth pointing out Euro Pharma dollars are interested in Sortilin, to me at this early stage that's a positive that's bigger than the negative of highlighting the existence of a rival.

Generally speaking Pharma $$ seem to play a big part is these early stage biotech getting ahead of the curve in their valuations and getting picked up by these analysts. Thtx doesn't have that so it's another reason to be ignored. I don't think the biotech market industry is full of overeducated mavericks. They seem to move as a herd into new techs or new indications and most often it's Pharma $$ leading them their. 


Wino115 wrote:

This won't make anyone happy, but I will voice what is probably the frustration we all feel.  So I am subscribed to Barclays biotech research and they have a massive research team looking at all sorts of cutting edge biotechs.  One guy specializes in oncology (Peter Lawson) with a PhD from Cambridge or something like that.  He digs into the science to try to find drugs he thinks have at least a decent shot at working.  I read stuff about unbelievably complex approaches to targeting tumors and selectively "turning on" your drug, altering the immune system to work better, etc.  it almost seems the more far-fetched the complexity is, the more attention the company gets.  But they cover these and value them and recommend them to their client base.  He looks at all these crazy early science companies along with some simpler ones with a high probability of success.


Yet here we see in JFMs well written description that I've highlighted below, the straight forward science of what they are doing and why it may work really well.  Yes, it's ground-breaking and complex, but nothing like some of the highly experimental and rube Goldberg like descriptions of some of the approaches I see and that analysts cover. I just don't get why someone who understands oncology and can read the key 3-4 papers would not want to at least understand this drug, what it's doing, how it's doing it, why there is proven scientific rationale for it to work, and what it could mean for a $350mil company.  I just don't get why no one wants to understand it in its comparative simplicity.  Of all the many approaches I've tried to understand, this is definitely on the simpler side of things.  Soleus's other investment (Bioatla) is wildly complex compared to THTX. Read this description of their approach compared to SORT1, it's crazy risky comparatively:

"BioAtla scientists have discovered a novel chemical switch mechanism involving physiological-occurring chemicals, such as bicarbonate and hydrogen sulfide. These molecules are negatively charged at physiological conditions and interact with positive charged areas on the protein surface. Under acidic conditions of the tumor microenvironment they are neutralized and released from the protein surface, uniquely allowing CAB antibodies to bind to their target and attack the tumor cell. BioAtla refers to this novel physiological mechanism, used for generating CABs, as Protein-associated Chemical Switch(es) or PaCS Mechanism."

Yet this is followed and liked by analysts and investors.  Think of all the things that could go wrong with that!  So that is what is most frustrating is that TH1902 is straight forward compared to many other approaches, yet the specialist biotech analysts are completely unaware of it for the most part and either aren't excited by the science, don't see the quid pro quo coming, or haven't bothered to learn about it.  Getting past P1 will change all that, I know.  But not having at least a few analysts look under the hood now is very frustrating given some of the science they do spend time on.   


The one thing I do see is that of all the companies a firm like Barclays cover, most have at least one  cancer product in either P2, P3 or commercialized.   So I get that, but they do have some with pre clinical and P1 covered as well.   
 

jfm1330 wrote: I think we now have the proof that the last financing was unavoidable at terms similar to what was done. The market is simply unwilling to give them the benefit of the doubt on anything. They will swallow cr*p from other companies, but Thera is clearly on the black list of most. The market is very reluctant to give them credit for anything, but with real positive hard data on humans, some will change their minds and will recognize the reality. But it is quite clear now that we still have to wait a few months to see the beginning of that process.

The presentation yeserday was excellent, and the non verbal part was very telling in my view. These guys know more than us and they are very confident. Marsolais said that they were close to the MTD of free docetaxel, and if there is no neutropenia at all at that point, it will not happen drastically at the next higher dose. Toxicity appears gradually with dose increases. All that to say that they are already convinced that TH1902 MTD will be much higher than the MTD of docetaxel. They are convinced of that. They know it is the way it looks right now, but they still need to prove it. A much higher MTD would be a very strong signal of probable efficacy.

Again. Go back to the Q&A part of the presentation and look at their faces when asked if TH1902 would work better the more a cancer is at an advanced stage. They smile, but at the same time they try not to smile too much. They are convinced that they have something special in their hands because the combination of the features of the PDC and the target (sortilin) is so great. A small peptide with very high loading capacity while retaing affinity to sortilin with a selectively cleavable linker. The ideal target, sortilin, a membrane receptor whose role is to import/export large molecules through the cellular membrane by way of endocytosis, which allows to bypass a resistance mechanism to docetaxel, and the best part is the expression of sortilin is very low in all healthy tissues, except the neurones, but TH1902 does not cross the blood brain barrier, and the expression is high in many cancers, and increases as the cancer evolves to a more agressive stage. Really the perfect target to treat refractory advanced cancers. Obviously, not all cancer are expressing sortilin, but the percentage of them that do express it represents an enormous part of all cancers, so an gigantic potential market. If it would succeed with only 10% of that, it would still be a blockbuster platform, because, again, the real value is not only in TH1902, but in the peptide (TH19P01) that can be loaded with any cytotoxic agent. Marsolais said it verbatim yesterday.

In a way I am back to my "too good to be true" that I was repeating about the ibalizumab deal a few years ago. In the end, ibalizumab (Trogarzo) ended up as a commercial failure, but there was a window of opportunity to make a lot of money with it. I was dumb enough to miss it, like many others here that are now very frustrated because of that. But now we are up for another opportunity. I am quite convinced it will be really good. How good? I am not sure, but good enough. That being said, it seems the market still believes that it looks too good to be true, and the Trogarzo fiasco is probably an explaination as to why there is so much skepticism. But reality always catch up and the answer is becomes clear.

 

 



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