Adelaide biotech company Bionomics to sell cancer drug assets

BIONOMICS has significantly altered its plans by deciding to divest two cancer drugs in an attempt to focus research and commercialisation efforts on just one “pipeline molecule”.

Bionomics managing director Deborah Rathjen at their offices in Thebarton.

• Growing excitement: Bionomics shares on a high

BIONOMICS has significantly altered its plans by deciding to divest two cancer drugs in an attempt to focus research and commercialisation efforts on just one “pipeline molecule”.

Managing director Deborah Rathjen told The Advertiser the company had decided its oncology drugs BNC105 and BNC101 were “assets that are better off in someone else’s hands”.

A global auction is now underway for the company to find interested parties.

“We are seeking to monetise these assets as they are no longer central to our strategy,” Dr Rathjen said.

“Our focus is now on really our pipeline molecule, BNC210, which has many applications and needs significant investment.”

BNC210 is undergoing trials for treating anxiety, depression, post-traumatic disorders, among others.

“It was just better maximising our Adelaide resources,” she said.

While the depth and breadth of Bionomics’ pipeline has provided the business with “multiple shots on goal”, the company needed to concentrate resources on therapeutic candidates that address high unmet patient needs where there is limited competition and high potential value, which offered the “greatest promise of generating returns”, she also told shareholders at the annual general meeting on Wednesday.

The company believes BNC210 has a number of competitive advantages when it comes to side effects.

It estimates the anxiety treatment market to be worth US$18.2 billion ($23 billion) in sales by 2020.

Bionomics also said difficult decisions had been made to keep the company agile and focused, including closing its US operations, resulting in significant cost savings.

It had $42.8 million in cash and cash equivalent at the end of June and made an operating loss after tax of $6.75 million.

The company’s share price, which doubled in 12 months in August, fell 2.4 per cent to 40c.

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