Melanoma Vaccine Company Vaccinoma To Raise $17m In New IPO - Phase III Human Trial Stage

Main Category: Melanoma / Skin Cancer
Also Included In: Cancer / Oncology;  Immune System / Vaccines
Article Date: 28 Apr 2006 - 0:00 PDT

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Vaccinoma Inc (ASX:VAC) is slated to raise at least $17 million via an initial public offering (IPO) to proceed to Phase III human trials of its melanoma cancer vaccine and to progress a breast cancer vaccine to Phase I human trials.

Australia endures the highest rate of skin cancer in the world and 80 percent of the 1200 annual skin cancer deaths are caused by melanoma.

There are about 60,000 new cases of melanoma in the US each year and nearly 8,000 deaths. Current treatments are limited in effectiveness and commonly suffer serious toxicity. The world market for melanoma treatments is estimated at approx $US1.5 billion per annum.

The Vaccinoma vaccine has been tested in about 600 Americans so far and has completed Phase 2 trial results which produced a compelling statistically significant case that the vaccine is safe and effective.

The Vaccinoma vaccine uses a combination of purified antigens from 3 melanoma cell lines which stimulate the body's immune system to fight tumors.

"With a cancer vaccine ready for Phase III clinical trials across Australia and the US in about 18 months, this is automatically one of Australia's most advanced biotech companies. A late stage product targeting large markets and with a modest valuation should attract shrewd investors," said Mr Paul Hopper, chief executive officer of Vaccinoma.

"Existing treatments for melanoma are surgery, observation with combinations of radiation, chemotherapy and injections of interferon. As evidenced by the high death rate and serious side effects, there is dire need for a highly effective and low toxicity vaccine."

Vaccinoma is in discussions with the US FDA for the design of the Phase III human trials. Significant research and development have been undertaken over the past decade and the Phase III trials will seek to replicate the successful Phase II results in a larger patient sample spanning the US and Australia.

To date Vaccinoma has received $US11 million in funding support for this vaccine from the FDA, the National Institutes of Health and the US National Cancer Institute, amongst others. A similar investment has been made in terms of subsidised clinical trials and laboratory services.

Key milestones for the vaccine include cGMP manufacture to commence shortly after the IPO, approval for Orphan Drug status, commencement of Phase III human trials and research and development of the breast cancer vaccine.

The Company is offering 17 million shares of $1 each with allowance for a further 8 million shares for oversubscriptions. Pegasus Corporate Advisors in Australia is the Lead Manager, with Sudbrook Associates in London heading the European selling syndicate. The company will list with a market capitalisation of $43 million. ASX listing is expected in June.

http://www.vaccinoma.com

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