OBI Pharma is capitalizing on the growing trend of Antibody-Drug Conjugates (ADCs) by planning to raise NT$2 billion to support its development efforts. The company has announced a capital increase of 33.8 million shares, aiming to secure over NT$2 billion by mid-November. The most anticipated project, OBI-922, a novel anti-cancer drug, is currently in Phase I clinical trials in the United States, and with the infusion of capital, it could potentially move into Phase II next year.

According to the announcement, OBI Pharma will issue 33.8 million shares at a price of NT$59.2 per share, with the record date for subscription set for October 21. Existing shareholders and employees can submit payments from October 25 to November 5, while payments from designated investors will be accepted from November 6 to November 11. Thus, the funds are expected to be in place no later than mid-November.

OBI Pharma, which has committed to focusing on ADCs as its core business, has recently seen a string of positive developments. Its leading drug candidate, OBI-992, was recognized at the 11th World ADC Awards, making it into the shortlist of "Most Promising Clinical Candidate for 2024" out of over 1,000 nominees. Eight candidates were nominated, and the final winners—first and second place—will be announced at the World ADC conference in November.

OBI-992, which OBI Pharma licensed from Biosion in December 2021, is an anti-TROP2 antibody, with OBI Pharma responsible for constructing the ADC. The drug entered Phase I/II clinical trials in the U.S. in June, targeting patients with advanced solid tumors, including gastric cancer and potentially other cancer types. These trials aim to evaluate the drug's safety, pharmacokinetics, and preliminary efficacy in these populations. Additionally, in August, the FDA granted OBI-992 "Orphan Drug" status for gastric cancer, including adenocarcinoma of the gastroesophageal junction.

OBI Pharma noted that preclinical studies indicate several advantages of OBI-992 compared to other approved or in-development TROP2 ADCs, including high stability in the bloodstream and a "bystander effect," which enables the drug to kill neighboring TROP2-negative cancer cells. Furthermore, OBI-992 has shown the ability to overcome potential drug resistance, with outstanding results in both animal studies and organoid cancer models.

Industry experts suggest that OBI-992's FDA orphan drug designation for gastric cancer, combined with its recognition at the World ADC Awards, will boost OBI Pharma’s fundraising efforts and accelerate the clinical progress, potentially advancing to Phase II by next year.

Resource (mandarin): 浩鼎 擬募資20億備戰ADC