Coiled Therapeutics (LSE:COIL) — Investor Presentation

0:01 Good afternoon, and welcome to the Rockfall Therapeutics PLC Investor Presentation. Corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll.

0:34 I would now like to hand you over to Steven West, executive chairman. Good afternoon to you, sir. Thank you. Good afternoon, everyone, and welcome to the Rockford Therapeutics investor presentation today. I'm Stephen West, the executive chairman, and I'm joined here today by our new CEO, Achin Reginald, to talk about the newly transformed, Rockford Therapeutics. As you would have seen, we completed the acquisition of Oncogeny last week, which has transformed the company into a material oncology biotech business focused on the next generation of cancer medicines. We're very excited about this acquisition for a number of reasons. I think the main reasons are it's enhanced our board and management team, it's added two complementary drug programs to our existing portfolio, and it introduces additional funding through a 14 p placing that we did raising just over £1,000,000.

1:30 So it's a very exciting time for the company. I'm absolutely delighted that we've completed the transaction. And, you know, if I was gonna summarize where we're at, we have all the tools in the toolbox to to deliver shareholder value. Yeah. So without much further ado, I'd like to pass the presentation over to Ajam who can talk us through the presentation.

1:51 Great. Thanks very much, Steve, and thank you all for joining us. So what I'd like to do is to walk through the presentation. As Steve mentioned, the acquisition creates a material oncology focused biotech company. So what we've been able to do is to continue the company's focus in MIDKIND THERAPEUTICS. But in addition to that, we're adding a novel cell therapy and a novel oligo therapy. This portfolio is focused in oncology, but it's also focused in best in class medicines. What we're trying to do is to produce medicines that are likely to be first to market or best in their class when they reach market. And what you focused on is a niche, which is the patients that have tumors that are most difficult to treat. And this is particularly important because it remains a very high unmet medical need and therefore a very attractive commercial market.

2:51 The acquisition brings on board a leadership team, which includes professor Sir Martin Evans who won the Nobel Prize in 2007, Darren Disley, who's a very experienced public company CEO and nonexecutive director, and myself, Ajaan Reginald, as CEO. I've been a CEO for around twenty years and have been in biotech roles in big pharma as well as in small companies raising money, completing licensing deals, probably more most importantly for this stage of development, taking early drugs from a very similar stage that we are in today, so preclinical, through clinical trials and and ultimately into the clinic. I've also, during the pandemic, had significant experience of scaling up manufacturing commercializing commercialization of diagnostics.

3:41 So as as Steve mentioned, I think we're very well set up. We have all the tools. We're including a state of the art laboratory and access to manufacturing, and and we're well positioned to deliver the major milestone, which is to have a product ready for clinic at the end of next year. We're in a very interesting segment. So oncology and particularly innovative oncology is the highest growth and highest value segment in biotech and pharma. As the slide points out, double digit growth with very high preclinical valuations for oncology companies in the last fifteen years. We also have, through this acquisition, access to a sophisticated investor base.

4:28 So OncoGenie had a a big pharma as well as specialist institutional shareholders, And we believe this sets us up both in terms of our corporate structure as well as our people and our portfolio for a potentially very positive future. I've talked a little bit about the leadership team. In addition to to Steve and myself, as I mentioned, we have Sir Martin Evans as our group chief scientific officer. Darren Disley joins our experts already on the board, Simon Sinclair, Jean Duval, and Michael Steen. In addition, we've also been able to bring professor Armen Keating on as chief medical adviser. Armen has over forty years experience in cancer medicine. He's a professor of both oncology and cell therapy in Toronto.

5:20 He was a past president of the American Society of Hematology. He has a significant hands on experience of taking preclinical medicines into the clinic. So So it's exceptionally well placed to help us with our current challenges and and help us progress as quickly as possible.

5:39 So snapshot snapshot of Rockford. So Rockford was established in in 2020. And as you know, through two transactions, we're now at a point where we have a significant preclinical biotech company with a surprisingly large portfolio for such a small company. That portfolio is is very innovative. So we have the mid kind antibodies where we have patent protection, but we also have in vivo efficacy and and animal data. The very innovative RNA therapeutics where we were recently announced our proof of concept data. And then the new additions, the mesodermal MK cells and the novel siRNA. And we'll talk a little bit more about those in in later in the presentation.

6:27 The leadership and team and facilities we've talked about and then to summarize again the value potential. Now this market, in particular, oncology and innovative oncology has been probably the hottest market in biotech for at least the last five years.

6:46 These programs fit into a very structured approach that we've taken to developing early cancer medicines. So you'll see that each of the different programs goes through lead optimization and then an in vivo efficacy study and then toxicology. Our full our full programs are progressing well with our expectation that one of the programs would be ready to for clinical trials for submission to clinical trials at the end of twenty twenty three. I think what's interesting with this portfolio is while it's focused, it also provides us with a degree of diversification of risk, and that comes from the different technologies that are being applied. So antibody technology for the MIDCA antibody portfolio is fundamentally different to the technologies that are used for cell therapies or for oligonucleotides.

7:39 And that diversification of risk, I think, is important as we think about being able to deliver on our milestones for the end of next year.

7:50 A little bit of detail about our antibody programs. So the midcard antibody programs have got very compelling data in terms of the models that we've used to test them to see if we can reduce lung cancer metastases in breast cancer and also to reduce osteosarcoma, the size of osteosarcoma lesions. This work has been done over nearly a decade. And what we're seeing now is the ability to move these antibody programs into the final stage of in vivo testing in preparation for us to be able to move them into clinical trials. With the oligo programs, we see this very compelling evidence. So if I could draw your attention to the the picture on the right hand side, what you're seeing at the top there is tumors that have not been treated. So you see four tumors in a row there. That's that's the size that you would expect to see or or in fact, you we did see when these tumors were not treated. So there's your control. And then what you see below where it says m d k 81 to one twenty one is the effect of the mid kind oligo on this type of tumor.

9:07 It's a very profound effect. And while this is an early study and it it's a you know, it's an early preclinical study, this is quite promising and certainly gives us very positive potent or or expresses the very positive potential this new type of therapeutic can can potentially have in solid tumors, which is a very difficult type of cancer to treat. So overall, as a mid kind progress update, we've been able to complete the research collaboration at Murdoch University. That allows us now to progress into in vivo studies in tumor models with our novel oligo therapeutics. The in vitro studies that we completed at Murdoch demonstrated that our oligo therapeutic could produce short and mid kind and that the short and mid kind had a high has a highly specific mechanism of action.

10:04 Results of this allow us to really underpin that we may have a first in class medicine. Again, the caveat is this is, you know, very, very early research, but this certainly is as promising early research as we could expect to have. And, obviously, it's very important to capture the value that we're creating from this innovation, and we do that with patent filings. And we've done that by filing patents in Australia and most recently, a UK patent that protects the composition, which means the actual substance and the material that we're patenting is actually the sequences of the therapeutics that we're that we're applying.

10:43 The stat six sRNA is the first program that we've been able to bring in from Oncogene. Very similar to the mid kind oligo, what we're looking at here in these graphs is the ability of the oligo therapeutic to reduce the size of cancers. And what we're able to show in in vivo models was that we saw a very significant reduction in the size of colorectal cancer over a, you know, significant duration of time. And as I mentioned, this is statistically significant. So with the s with the stat six SRA, what we're looking at here is another novel oligotherapeutic. It has a different mechanism, so it's quite different to MIDKINE, but it has a similar result, which is we're trying to reduce the size and ultimately to kill these very difficult to treat cancers.

11:38 The MK is a much is a different approach. So this is a cellular therapeutic invented by the team that was led by Sir Martin Evans. And it's a cell. So it's a living cell which has been programmed to kill cancer directly, but also to prime the the body's own killer cells, which are called natural killer cells.

12:01 This is a very, very hot area of biotech at the moment. This is where we're seeing probably the most interest. So to give you a macro view, as I mentioned before, oncology is is the hottest area in biotech as a whole. Within within oncology, immunotherapy and cell therapy is probably the the hottest field. And then within that, this is this is really the area in actual killer cells where we're seeing a lot of interest currently. So we're very excited that we've got a product here where we're able to both kill cells directly, but also to prime, which it means to activate natural killer cells. And what this data is showing is in two different types of tumor, these cells were able to prime natural killer cells as well as actually kill the leukemia and myeloma directly.

12:49 So this is one to watch. As with our other programs, we'll be reporting more news on these as the data comes through in the coming months.

12:59 So in summary, Oncogeny and Rockfall forms together, I think, a material biotech company with a significant portfolio and and great upside potential. We are hoping to have products ready to be able to go into the clinic at the end of next year. And this this is enhanced by our our diversification of risk through using multiple technologies and the fact that we've got four products moving forward. We have an expert leadership team that has done this before and includes a Nobel laureate and professor Samarson Evans. We have access to state of art laboratories here in Stratford, Bonavent as well as manufacturing facilities. And we have an institutional investor base and network that we've established over twenty years, which gives us access to big pharma, venture capital, and specialist funds.

13:56 Thanks. Thanks, Arjan, and thanks, everyone, for your attention. So that concludes the actual presentation itself. What we'd like to do now is actually open it up to a q and a session,

14:09 which I think will be coming out to your screen, and we can read them out and ask them as we go through. Ashan, Steve, thank you very much for your presentation. Ladies and gentlemen, please continue to submit your questions using the q and a tab situated at the top right hand corner of your screen. While the company takes a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. As you can see, we've received a number of questions throughout today's presentations and thank you to all the investors for submitting those questions. Could I please ask that you read out the questions, Adrian and Steven, and give responses where appropriate to do so, and I'll pick up from you at the end.

14:49 Sure. Thank you. Adrian,

14:52 I think the first one might be for you. Is that okay? Yeah. No. Absolutely. Thanks, Steve. So the question is, where do we stand on the competition? Obviously, what we are trying to achieve is arguably the holy grail of medicine, and as such, all big pharma is trying to achieve the same. Can you give me an understanding of where you think you stand in this goal and why you think you can see concede over so much competition?

15:20 And that's so I think the question there is is, you know, where are we in terms of competition?

15:26 And as I mentioned to you, to give you a macro view, oncology is the the hottest field and and and therefore has become the most competitive field in biotech and pharma. Within that, we are playing in the subset of innovative medicines, which again is extremely competitive because there's been a lot of success and a lot of increase in valuation of early companies in that innovative oncology field. I suppose what differentiates us from competition is the fact that we have four patented programs. So each of those programs is protected by composition of matter IP. And in the MidCon field, we have, I think,

16:04 enhanced our leadership position in having the leading intellectual properties of patents as well as know how. And I wouldn't reduce the know how. I think it's patents and know how in the Midkind field. I think Rockfall was already in that leadership position, and we've recently filed additional patents to enhance that. Similarly, in the stat six siRNA field, we have composition of matter patents, which protect our niche.

16:30 In the mesodermal killer cell, that's that's a unique cell type. That's a a novel cell type that that we have patented. So I think we feel good about our position versus the competition. My caveat would be this is all very early. This is preclinical oncology. So it's a competitive field. That competition is largely about ownership of IP, and success in this field will be driven about our by our ability to complete experiments and continue to deliver good tangible results.

17:04 Thank you, Steve. Thanks, AJ. I would take the next couple of questions. So the next question is, will the directors be looking to buy more stock on the open markets?

17:19 I what I can say there is we do have directors that have indicated they are looking to buy shares on the market to support the company, which is great. However, we are actually in a in a closed period because we need to publish our interim accounts before the end of this month. So until we publish those results under the MAR rules, we're not allowed to actually buy shares as directors. But I do believe some directors will be buying shares after we publish those results. The next question is, why is there so much downward pressure on the share price? Is one of the majors major shareholders selling? Great question. I wish I could answer it because I do find it quite surprising as well. But I think it really is the reflection of the market itself and the fact, you know, there's lots of sectors that are suffering this way. And I think biotech itself has is probably, been, yeah, one of the the worst hit sectors, sort of last year. But I think it is picking up this year, and I I think, over the next six to twelve months, I think you'll see a a vast improvement in

18:34 the biotech market generally. So that's sort of a macro comment. I think specifically for us, it is frustrating, because we have been delivering, what I classify as material progress during the year. And I think when you read our interim accounts, which should be published published shortly, you'll see there's a lot of highlights in there. I mean, we we've done a lot this year, and I'm incredibly proud of the proud of the team delivering those results. And as a business, what we need to do is continue to deliver results. I think with our enhanced management team, our enhanced assets, and also having our own laboratory to do the work, I would expect the results to be coming ticking faster over the next six, yes, six months or so.

19:24 And, hopefully, that'll be reflected in the share price as we do that. I think the next one might be for you, Yes. So the question is, what are the next key milestones for the company? So if I may, I'll just take us back to the milestone slide. So the as Steve points out, our focus is really on delivering progress with our medicines. The the full programs you'll see go through a process where we do lead optimization then in vivo efficacy and toxicology. We are expecting these results at the end of this year from a number of programs.

20:13 We have some other results that we are just completing now. So, you know, our milestones will be driven by our ability to progress programs through this structured process, which ultimately delivers the key value milestone, which is a program that is ready for an ID or CTA. I think next question is what what potential one for both of us, I suppose, Steve. Does the company have any plans to list on Nasdaq? Yeah. I think it's definitely not off the table, but I think it really is a matter of materiality for us. We do need to get our market cap up to a higher number than what it is now before we could entertain listing on the NASDAQ.

21:02 But it's it is certainly something we're interested in doing one once we do increase that market cap. You know, I completely agree. And and as you say, I think the key constraint is having a a degree of materiality. The the next one is similar, Steve. It says, what is the end goal for Rockford Therapeutics buyout from a major selling assets licensing? Should I start off with that one? And then Yeah. I think so, Thanks. Yeah. I mean, I think I think as we've mentioned before, our focus is to develop life saving medicines. You know, we've got four programs here that we're we're taking from from innovation. So it's, you know, a great invention, a great piece of science, and we're trying to make it into something tangible that we hope in the future will help patients.

21:49 We have a lot of experience on the board and in the management team on of how to do that, but we also have a reasonable degree of experience in how to do deals and and how to do how to get products to market in different ways. That doesn't necessarily always have to be that you do it. It might be better in certain jurisdictions that other companies are better suited particularly for Japan and China. So I think as Steve pointed out, we're open minded, and our our aim is to create value for shareholders by developing these medicines in the best possible way. Yep. Sure. I mean, I I totally agree, Adrian. I think the only thing I would add to that is we could we could also look at a combination of those options as well.

22:37 Does it have to be one one of those options? Absolutely. Yeah. Absolutely. We could yeah. Deals can be done in lots of different ways. Completely agree. Which which I can sorry. And just to add, I mean, which is one of our Jen's four days, having worked at a as a senior role in Roche m and a. I think Adjane's very well placed to to not only attract those discussions, but also to see them through as well. Yeah. No. Very kind, Steve. Yeah. Yes. Experience of doing that. And and as you say, I think we should for each individual program, there are multiple different options, and there's nothing to stop us from executing any combination of those. Absolutely. I think the next question we've already covered, what are the next milestones? And then, again, if I read this one out, Steve, probably for both of us, what do you feel that you will what you need to achieve to attract the attention of larger investment community?

23:35 Well, I mean, may maybe I'll just start that off there, Jan. You could add some meat to the to my answer. What I can say there is that I think, you know, by doing the Oncogeny transaction, we really have attracted some extra interest, not only from the media, but also larger sector specific investors as well. I'm not sure if everyone saw, but we did manage to get a nice little write up in the Saturday times on the weekend as well, which proves that the the media is sort of is starting to take notice in in what we're doing, which is great. And in terms of the larger investment community, that that really is a job for me over the next few months to start doing a non non deal roadshow by going out and speaking to some of the larger institutions, some of the larger brokers, and just getting the story out there so people can see what we're doing.

24:31 I think that's that's an important part of our job. Yeah. No. Absolutely. And and as you pointed out, I think we've already got a few things scheduled. That's already in the plan for us to start meeting people. You know, Rockfall was only founded in in in 2020. So I think part of our role is is to to increase awareness and then back it up by delivering solid results. Excellent. There's one more question, which is if you reach the clinical stage, what would be the percentage chance of them being successful to progress to market? That's a great detailed question. All the all the data is published. Typically, immuno oncology, which is our niche of oncology, has a higher success rate at the early stages. So the high has a higher success rate at phase one, phase two. And overall, the closest the the closest comparator is is a technology called CAR T, which also has a a higher than typical success rate.

25:37 But but in all honesty, it's difficult to give you a single number for for four different programs. And as I said, the the most important caveat here is we're preclinical. So, you know, the the the key focus for us is to reach this key milestone that we that we have at least one program ready to look at clinical trials at the end of next year. I think that's the end of the questions. Adrian and Steve, thank you very much for that. I think you've addressed those questions that you can from investors. And of course, the company will review all questions submitted today, and we will publish those responses on the Investor Meet company platform before redirecting investors to provide you with their feedback, which I know is particularly important to the company. Ajin, can I just please hand back to you for a few closing comments? Absolutely. Yeah. Thank you. It's been great to talk to everyone today, and I suppose I'd like to reiterate with a with a summary.

26:29 The the acquisition of Oncogeny creates a material biotech company. We have a a great portfolio for a small company with four independently diversified technologies that all have potential to be high growth, high value products in in in the exceptionally attractive oncology market. Our near term goal is to have a program which is IND ready by the end of next year. We have an expert leadership and management team board who have got experience of doing this, and we have the facilities and the infrastructure and, you know, and and probably most importantly, the core scientific science, the core technology to be able to to be able to progress across four different programs. And the and the institutional investor base and network to access the institutional investor base, which we hope will create long term shareholder value.

27:21 Thank you. Hi, John and Stephen. Thank you for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that management can better understand your views and expectations? This will only take a few moments to complete, and I'm sure you'll be will be greatly valued by the company. On behalf of the management team of Rockford Therapeutics PLC, we would like to thank you for attending today's presentation. Good afternoon to you all. Thanks, everyone. Thanks. Thank you.