SMALL CAP IDEA: Scancell is changing into a key participant in most cancers immunotherapy

For ambitious junior life sciences companies, often the ultimate goal is securing partnerships with well-funded industry players to propel drug development toward commercial success.

For many smaller innovators, bringing a promising molecule from the lab through clinical trials and onto the market is a daunting challenge requiring significant time and financial resources.

For Scancell Holdings, a UK-based specialist in immuno-oncology, this challenge has been met with two notable partnerships worth a potential £940million ($1.2billion) — both with Danish biotech company Genmab.

Genmab

The most recent deal grants Genmab exclusive global rights to develop and commercialise a monoclonal antibody from Scancell’s GlyMab platform.

Analysts estimate an upfront payment of around $5million, alongside milestone payments tied to development, regulatory, and commercial achievements. Scancell will also earn royalties on net sales of products resulting from the collaboration.

The licensed antibody is one of five in Scancell’s portfolio targeting glycan structures associated with cancer. These partnerships underscore the potential of Scancell’s GlyMab platform, though the company’s ambitions extend well beyond these agreements.

Deals: Scancell Holdings , a UK-based specialist in immuno-oncology, has struck partnerships worth a potential £940million ($1.2billion) — with Danish biotech company Genmab

SCIB1: Progress in advanced melanoma

Scancell has made significant strides in developing SCIB1, its lead asset targeting advanced melanoma, a form of skin cancer.

The SCOPE trial, testing SCIB1 in combination with checkpoint inhibitors ipilimumab and nivolumab, has yielded promising results in 25 patients.

At six months, 80 per cent of participants experienced no disease progression, with 20 per cent achieving complete remission. The overall disease control rate — including stable disease or tumour shrinkage — stood at 84 per cent, and 72 per cent of patients showed significant tumour reduction, improving over time.

These results compare favourably with outcomes from checkpoint inhibitors alone, which typically achieve 65 per cent progression-free survival and a 16 per cent complete remission rate. The data suggest SCIB1 enhances both the durability and effectiveness of treatment.

Dr Heather Shaw, an oncologist at University College Hospital in London, praised SCIB1 for its potential to improve first-line therapies for advanced melanoma patients while maintaining a strong safety profile.

Scancell’s chief scientist, Professor Lindy Durrant, highlighted progression-free survival as a key metric for future trials, stating: ‘The SCOPE study continues to yield excellent results with a PFS of 80 per cent and five patients now achieving a complete response.’

Advantages of SCIB1

SCIB1 is the only off-the-shelf DNA cancer vaccine currently in development for melanoma. Unlike personalised cancer vaccines, which are tailored to individual patients, off-the-shelf vaccines are expected to be less expensive, easier to manufacture, and more readily available.

Analysts at Panmure Liberum have noted the potential advantages of this approach, predicting that it could make Scancell a leader in this emerging field. Ease of use is enhanced by a tie-up with PharmaJet, a specialist in needle-free injections.

Modi-1

In addition to SCIB1, Scancell is advancing Modi-1, another phase II asset targeting renal cell carcinoma (RCC) initially.

Data from the ModiFY study, which combines Modi-1 with checkpoint inhibitors for RCC, is anticipated in the first half of 2025.

New leadership

Last month, Scancell appointed Dr Phil L’Huillier as chief executive, succeeding Professor Durrant.

L’Huillier brings a wealth of experience, having previously led CatalYm, where he advanced products from phase I to phase IIb and raised over $200million.

He has also been involved in the development of multiple biotech companies, including Achilles Therapeutics and Blink Therapeutics.

Panmure Liberum welcomed his appointment, stating: ‘We expect the appointment to add company development experience to the solid scientific foundations of Scancell and should enable the maturation of the company as it reaches the next stage.’

Last week, L’Huillier hit the ground running as he unveiled plans to raise up to £9.5million of new investment made up of a placing of new shares at 10.5p each that will bring in at least £8.5million and a retail offer of stock.

Together with the cash already in the bank (£9.1million at the last count), the company believes it will have sufficient resources to continue development efforts until late 2026.

What’s it all worth?

Panmure Liberum rates Scancell shares as a ‘buy,’ with a price target of 23.3p — a 65 per cent premium to the current price. The firm believes positive clinical data could trigger a re-rating of the stock, particularly as awareness grows around the potential of cancer vaccines.

‘The growing awareness of the potential in the cancer vaccine field is translating to a rise in the profile of Scancell,’ Panmure noted.

With two major partnerships, a strong pipeline, and a new CEO poised to drive its next phase of growth, Scancell is positioning itself as a key player in the competitive and evolving field of cancer immunotherapy.

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