In a significant move signalling strong confidence in Syntara (ASX: SNT) and their drugs in development, institutional investors have subscribed for $10 million of shares, driven by the immediate commercial prospects of their leading drug SNT-5505. The funds will also support an emerging pipeline of drugs addressing Parkinson’s disease and skin scar trials.

The $10m institutional Placement follows Syntara CEO Gary Phillips’ presentation to brokers, outlining the Company’s focus on pioneering disease-modifying drugs and prioritising haematological malignancies, particularly myelofibrosis. The recent success of the SNT-5505 monotherapy study, reported positive clinical data in July 2023, has heightened investor interest after Syntara reported encouraging discussions with the US Food and Drug Administration (FDA). 

Syntara, recognised as the global leader in lysyl oxidase chemistry and biology, boasts a multi-year research program that has yielded three drugs currently in phase 1c/2 studies. SNT-5505, with positive results in cancer research, has demonstrated a reduction in bone marrow fibrosis grade in 50% of evaluable myelofibrosis patients in a 6-month Phase 2 study.

The $10 million equity raising, will fund crucial clinical trials and drug development efforts. The key initiatives include a myelofibrosis combination clinical trial and Phase 2 studies for iRBD/Parkinson’s and scar trials. These trials aim to deliver clinical proof-of-concept data by H1 2025, propelling Syntara into pivotal discussions with the FDA and attracting interest from strategic partners which could include the lucrative Big Pharma companies. 

Syntara’s drugs, leveraging lysyl oxidase inhibition, offer an anti-fibrotic therapy, directly addressing tissue stiffening caused by increases in collagen and cross-links. SNT-5505, in particular, has shown promise not only in myelofibrosis but also in potential haematological indications such as MDS and solid tumours, as evidenced by two Nature publications.

The $10m was raised at an Offer Price of $0.022 per new share with Canaccord Genuity and Bell Potter Securities leading the raise, taking pro-forma cash on hand as of 30 September 2023, to $21 million. 

Syntara’s CEO, Gary Phillips, expressed optimism about the Company’s future, citing the funds’ targeted use in crucial areas such as clinical trials, drug development, and research costs. 

“Syntara has emerged from the restructuring of Pharmaxis having shed more than A$14m in costs per annum.” 

“With a significantly lower cost base this capital raise now provides a cash runway to mid-2025 by which time the company expects to have delivered results from three value defining phase 2 clinical trials, two of which have recently commenced recruiting. 

“I am delighted by the strong support received from existing substantial shareholders who recognised the opportunities available to the company with this extended runway, and have increased their ownership position. I am also pleased to welcome new investors to our register and look forward to building on this excellent start for Syntara.”

The Program Update provided by Syntara includes insights into the clinical positioning of SNT-5505 in myelofibrosis, emphasising its distinct mode of action and potential for disease modification. The drug’s promising Phase 2 trial results, including improved bone marrow fibrosis scores and stable haematological parameters, position it as a potential addition to standard care – JAK inhibitors through a combination therapy study which has already commenced dosing patients. 

Being a market with limited alternatives, blood cancer treatments have attracted strong commercial interest from Big Pharma seeking to enter the market, or protect their existing share of the USD $1 billion per annum market. 

In 2021, Constellation Pharmaceuticals was acquired for USD $1.7bn after completing Phase 2 trials for their JAK inhibitor myelofibrosis treatment. It was followed again in 2022 when Sierra Oncology was acquired by GSK for USD $1.9bn after filing a New Drug Application with the FDA for momelotinib, a JAK-inhibitor. 

Beyond their flagship SNT-5505 drug, Syntara is also running a clinical program targeting scar prevention and modification with another anti-fibrotic drug. SNT-6302, demonstrating cosmetic and functional improvements by reducing collagen by 30%, addresses the significant market for scar treatment, which exceeded USD $19 billion in 2019.

As Syntara moves forward with its clinical trials and drug development initiatives, the recent $10 million investment positions the Company well to make strides in addressing critical unmet medical needs, offering hope to patients and investors alike.