Prime Drugs (PRME) is one other Dr. David Liu biotechnology manufacturing with a near-billion greenback valuation and no property within the clinic. What makes Prime Drugs command such excessive valuation regardless of being merely in an IND-enabling stage?
Prime Drugs, as the title implies, is creating the comparatively new gene modifying know-how known as prime modifying. Prime modifying differs from each CRISPR-Cas9 and Base modifying know-how in essential methods. It was first described in a paper printed in Nature in 2019. This paper had Dr. Andrew Anzalone as its lead writer, and he was at the moment a postdoctoral fellow at Dr. David Liu’s lab. The 2 collectively based Prime Drugs to develop prime modifying.
In that paper, the important thing utility of prime modifying is described thus:
Prime modifying reveals larger or related effectivity and fewer byproducts than homology-directed restore, has complementary strengths and weaknesses in comparison with base modifying, and induces a lot decrease off-target modifying than Cas9 nuclease at recognized Cas9 off-target websites. Prime modifying considerably expands the scope and capabilities of genome modifying, and in precept might appropriate as much as 89% of recognized genetic variants related to human ailments.
Prime modifying is a extremely exact technique for modifying DNA in dwelling organisms, permitting for the addition, deletion, or alternative of particular DNA sequences with a stage of precision that surpasses earlier gene-editing strategies like CRISPR-Cas9. Similar to CRISPR-Cas9, prime modifying makes use of a information RNA molecule. Nonetheless, in prime modifying, the information RNA (sgRNA) accommodates two elements: one which acknowledges the goal DNA sequence and one other that carries the specified edited sequence.
Prime modifying additionally makes use of a Cas enzyme (often Cas9), however it’s modified to be “nickase” (cuts just one strand of the DNA) fairly than the same old double-strand break.
Prime modifying provides a number of benefits over conventional CRISPR-Cas9 gene modifying:
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Precision: Prime modifying is extremely exact, lowering the chance of off-target edits and unintended mutations.
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Versatility: It might probably insert, delete, or exchange DNA sequences, permitting for a broader vary of genetic modifications.
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Diminished Error Charges: The error price for prime modifying is decrease than that of another modifying strategies.
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Much less Invasive: Since prime modifying creates single-strand nicks as an alternative of double-strand breaks, it’s much less prone to set off the cell’s error-prone DNA restore mechanisms.
Prime modifying has been examined in human cell traces. Even the unique Nature paper says this:
We carried out greater than 175 edits in human cells, together with focused insertions, deletions, and all 12 kinds of level mutation, with out requiring double-strand breaks or donor DNA templates. We used prime modifying in human cells to appropriate, effectively and with few byproducts, the first genetic causes of sickle cell illness (requiring a transversion in HBB) and Tay-Sachs illness (requiring a deletion in HEXA); to put in a protecting transversion in PRNP; and to insert varied tags and epitopes exactly into goal loci. 4 human cell traces and first post-mitotic mouse cortical neurons help prime modifying with various efficiencies.
Now, Prime’s pipeline appears to be like like this:
Lead program is CGD. In cell traces from CGD sufferers, prime edited CD34+ cells generated myeloid cells that produce p47phox protein and NADPH oxidase exercise. p47phox is a subunit of the NADPH oxidase enzyme advanced, which is concerned in a course of often called the respiratory burst. The respiratory burst is a vital step within the immune response, notably in phagocytes like neutrophils and macrophages. It includes the manufacturing of reactive oxygen species (ROS) to assist kill invading pathogens. Thus, the myeloid cells generated from the prime-edited CD34+ cells have practical NADPH oxidase exercise, which means they will successfully produce ROS as a part of their immune response.
Now, Continual Granulomatous Illness (CGD) is a uncommon genetic dysfunction that impacts the immune system. It’s a major immunodeficiency dysfunction, which implies it’s sometimes current from start and is brought on by genetic mutations. CGD impacts the power of sure white blood cells, notably phagocytes (e.g., neutrophils and macrophages), to successfully kill micro organism and fungi. Preclinical knowledge right here reveals that PRME’s prime modifying know-how was in a position to restore operate in cell traces of sufferers with this illness.
These are sturdy however early knowledge, which is why this firm is seeing such excessive valuations for an IND stage firm. They plan to file an IND subsequent 12 months for lead program CGD. Extra IND filings will observe in 2025. Presently, it’s all very excessive potential however lab-based science. To get section 2 POC knowledge will take till 2026-27. Security would be the major knowledge to be careful for within the early days. I imply, it stands to motive: if the gene is accurately edited, operate might be restored – however we now have to see that there aren’t any unknown cascading results which is able to create security issues.
Financials
PRME has a market cap of $963mn and a money stability of $221mn. Analysis and growth (R&D) bills had been $34.6 million for the three months ended June 30, 2023, whereas Normal and administrative (G&A) bills had been $10.7 million. At that price, they’ve a money runway of some 4-5 quarters. Nonetheless, the corporate has a robust capacity to generate money. If they will produce some good early knowledge within the subsequent few quarters, money shouldn’t be an issue.
PRME is principally held by establishments and PE/VC corporations, with a small retail presence. GV 2019, Arch Ventures and Alphabet are key holders. GV 2019 has been offloading numerous shares in the previous couple of months.
Backside Line
PRME is an early stage, preclinical firm with large potential. Whereas I don’t spend money on firms with human knowledge, I’ll proceed watching PRME for such knowledge and a correct entry level.
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