Scandion Oncology is focused on the development of add-on therapies to reverse chemotherapy resistance in oncology. Lead asset SCO-101 is in a Phase II trial for mCRC and a Phase Ib trial for pancreatic cancer. Proof-of concept data, expected in Q322, will be crucial in shaping management’s future development plans.
Investment summary
Scandion Oncology has announced top-line data from part 2 of the Phase II CORIST trial, investigating the company’s sole clinical asset, SCO-101, as a treatment for chemotherapy resistant metastatic colorectal cancer (mCRC). The results confirm the safety and tolerability of SCO-101 in combination with FOLFIRI; however, the drug did not meet the 30% reduction in tumour size threshold required for clinical proof-of-concept (PoC). The company notes that tumour reductions have been seen in some patients and there is evidence of prolonged progression-free survival and stable disease in this population. Although the failure to demonstrate PoC at this stage is a disappointing result, we expect longer-term treatment data will need to be assessed before definitive conclusions on SCO-101’s efficacy can be drawn. In the absence of detailed clinical data, we maintain our valuation of Scandion Oncology at SEK609.5m or SEK15.0 per share; however, we will revisit this as more information on the top-line results is made public, expected on 4 October.
Tumours often develop resistance to chemotherapeutic regimens. Widely available drugs, such as irinotecan and paclitaxel, are commonly associated with tumour resistance. The existence of add-on therapies to reverse resistance of this type will be an attractive prospect to many clinicians, in our view.
