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Research: Healthcare
Scandion Oncology is a biotechnology company focused on the development of therapies to alleviate drug resistance in prevalent cancers. Its most advanced clinical asset, SCO-101, acts via a dual mechanism to sensitise resistant cells to treatment. Scandion aims to target resistant metastatic colorectal cancer (mCRC) and pancreatic cancer with SCO-101. Part 1 of the Phase II trial, CORIST, in mCRC identified a tolerated dose and a good safety profile in July 2021. The proof-of-concept part 2 study is underway. Results from the CORIST and Phase Ib trial, PANTAX, in pancreatic cancer are both expected in Q2–Q322.
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Scandion Oncology |
Drug-resistant cancer solutions
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Healthcare |
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14 January 2022 |
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Scandion Oncology is a biotechnology company focused on the development of therapies to alleviate drug resistance in prevalent cancers. Its most advanced clinical asset, SCO-101, acts via a dual mechanism to sensitise resistant cells to treatment. Scandion aims to target resistant metastatic colorectal cancer (mCRC) and pancreatic cancer with SCO-101. Part 1 of the Phase II trial, CORIST, in mCRC identified a tolerated dose and a good safety profile in July 2021. The proof-of-concept part 2 study is underway. Results from the CORIST and Phase Ib trial, PANTAX, in pancreatic cancer are both expected in Q2–Q322.
Resistance in metastatic cancers
Globocan estimates that 1.9m cases of colorectal cancer were diagnosed in 2020, with 935,000 deaths reported. For incurable mCRC patients, a commonly prescribed last line of treatment is the combination of folinic acid, fluorouracil and irinotecan, known as FOLFIRI. The development of irinotecan resistance is a limitation of this treatment, resulting in disease progression. Similarly, some pancreatic cancers develop resistance when treated with a combination of gemcitabine and nab-paclitaxel. Scandion aims to address this unmet medical need with its first-in-class drug SCO-101.
SCO-101 has a dual mechanism of action
Irinotecan is a widely used mCRC chemotherapeutic that is on the World Health Organization’s Model List of Essential Medicines. The active metabolite of irinotecan, SN-38, inhibits the enzyme topoisomerase-I, inducing DNA breaks and leading to cell death. Up-regulation of adenosine-binding cassette (ABCG2) efflux pumps is commonly associated with resistance to irinotecan. SCO-101 has a double-pronged mechanism: it causes the degradation of ABCG2, preventing unwanted removal of SN-38 from the cell, while acting as an inhibitor of UGT1A1, an enzyme responsible for clearing SN-38 from plasma, thus increasing SN-38 plasma levels, leading to higher levels of tumor exposure.
CORIST and PANTAX
Scandion’s Phase II CORIST study to assess the safety, tolerability and effectiveness of SCO-101 as last-line treatment in patients with mCRC, is currently underway. In July 2021, part 1 of the trial identified a tolerated dose of SCO-101 in combination with FOLFIRI and a good safety profile in 18 patients. Part 1 also identified wild-type RAS (wtRAS) as a biomarker for SCO-101 response. The current proof-of-concept part 2 study is now underway to further assess the safety and efficacy in wtRAS patients. Results are expected in Q2–Q322, as is the readout from PANTAX, the company’s Phase Ib trial as first-line treatment of metastatic pancreatic cancer (SCO-101 plus gemcitabine and nab-paclitaxel). Trial results from CORIST and PANTAX represent significant share price catalysts for 2022. As reported at end Q321, a cash position of DKK117m provides a runway through these readouts to the end of 2022.
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Financials
STB disclosed in its pre-close trading update that loan growth is strong and ahead of our forecasts. STB said that it saw a record level of new business lending in Q421 at £471.1m (+52% year-on-year). The core loan balances were up ‘by double digits’ year-on-year versus FY20, compared to our forecasts of 6% (core loans) and 2% (total loans). There were no new statements regarding margins or asset quality, although the news regarding the latter was quite upbeat in the Q3 update. We take note of the positives in this statement and will wait for the release of the full set of results on 24 March to update our model and estimates.