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On April 11th, Bioasis Technologies Inc. BIOAF announced a research collaboration with Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson JNJ. As part of the deal, Bioasis will provide access to its xB3 platform to Janssen in order for the latter to research, develop and commercialize new products. Few details were provided regarding the arrangement; however, any intellectual property generated from the work will be available to Bioasis. Representatives from both companies will have the opportunity for regular project team meetings to remain aligned with the research plan negotiated as part the agreement. The financial structure is a cost reimbursement plus margin arrangement with timing of the work to follow the research plan.
Ladenburg Thalmann Enlisted
During its Annual General Meeting (AGM) last November, Bioasis elected to evaluate strategic alternatives with the help of Ladenburg Thalmann. Alternatives that may be pursued include potential accretive merger or acquisition opportunities and future financings. Since the announcement the plan with Ladenburg has proceeded and Bioasis management is actively reviewing opportunities; however, there are no events yet worthy of a press release. The company is also working with Shadow Lake Group which serves as its business development advisor to identify new business opportunities and partnering. Other strategic efforts by Bioasis include the execution of two outstanding Material Transfer Agreements (MTAs), further draws on the Lind agreement or transactions with partners.
Upcoming Milestones
Below are recent and anticipated milestones:
➢ xB3-007 glucocerebrosidase enzyme replacement therapy (ERT), BBB data – 1H:22
➢ xB3-009 (Progranulin) BBB data – 1H:22
➢ $200,000 non-brokered private placement – February 2022
➢ Attendance at the 5th Annual Neuroscience Innovation Forum – March 2022
➢ Filing of FY:22 financials – mid-June 2022
➢ IND preparation for xB3-007 – 2022
➢ IND preparation for xB3-003 – 2022
➢ Additional research agreements with partners related to signed MTA – 2022
Additional Capital Raised
On February 17, 2022 Bioasis announced that it had raised $200,000 in a non-brokered private placement, issuing 770,000 common shares to an arm's length investor for $0.26 per share. The common shares issued pursuant to the private placement are subject to a four month hold period in accordance with applicable securities laws.
Summary
Bioasis shared a welcome surprise with investors with its Janssen Biotech collaboration deal. The agreement will provide xB3 to Janssen for development purposes. Bioasis will conduct the work on behalf of Janssen in a cost plus type arrangement. While expected timing was not disclosed, the parties have developed a research plan which, if successful could lead to additional work. Bioasis is also considering strategic alternatives and has reviewed some potential opportunities with several of its partners. However, no material decisions have been made.
Bioasis offers a broad portfolio built on its xB3 technology platform that can be developed both internally and with partners for many therapies demonstrating brain activity. While transportation, COVID and material availability related issues have delayed work, we anticipate a slowdown to the company's timeline and one dependent on partner capacity. We anticipate parallel development of several xB3 compounds that will enter the clinic over the next several years. Two MTA's that were signed earlier in 2021 may yield additional agreements (likely with associated upfront payments) to add to Bioasis' pipeline. We maintain our valuation of $0.60 per share.
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1. Source: January 2022 Corporate Slide Deck
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