|Positive Patent News for Intellect Neurosciences; What's Next?|
|Tuesday, 06 March 2012 00:00|
The tiny firm secured patent claims covering their own ANTISENILIN® monoclonal antibody platform technology for the treatment and prevention of Alzheimer’s disease. The news is expected to affect the bottom line as the low priced, fully reporting company has royalty bearing licenses with multiple Big Pharma partners who are leading the way in an effort to solve the Alzheimer's puzzle.
Barron's looked at the prospects for the pharmaceutical companies that are developing these potentially life-changing treatments and while they did not mention ILNS by name, that small biotech has substantial interests and involvement in the development of those drug candidates and their pending clinical trial results.
Whether the evidence from the current late stage trials is positive or not, industry observers expect to see the "bio trader's run up" effect in anticipation of that important clinical data's release.
That effect from speculators taking positions in the stocks will be critical to the success of the New York based firm whose shares have been starting to rebound following a nearly lethal toxic financing which saw its market cap almost completely destroyed in 2010.
In the end, what has saved Intellect has been the promise of its science, its growing patent portfolio and it's potentially lucrative licensing agreements.
Dr. Daniel Chain-- who discovered much of the science being used by Big Pharma and formed Intellect in April 2005-- currently serves as the Chairman and Chief Executive Officer at Intellect Neurosciences.
In an interview with BioMedReports, Dr. Chain explains some of the details and relevant information related to the patent news released this morning. Investors who are following the development of any of the potentially multi-billion dollar Alzheimer’s treatment candidates should take note of Dr. Chain's comments.
BioMedReports: Why does this patent allowance represent a breakthrough for ILNS?
BioMedReports: Does ths issuance of the Ponezumab patent make it more likely that the Bapineuzemab patent will ultimately issue?
Dr. Chain: Ponezumab is an example of a C-terminus specific antibody whereas Bapineuzumab is an example of an N-terminus antibody. The majority of previous rejections from the USPTO related to both N and C terminus claims so the allowance of the C-terminus claims indicates we have satisfied the patent office on those common prior issues. This means we can be much more focused to address the remaining arguments that are specifically in relation to the N-terminus where we remain confident to obtain additional claims. These will be dealt with in a continuation application.
BioMedReports: When will the new patent issue?
Dr. Chain: A Notice of Allowance is a written communication from the USPTO stating its intention to grant a U.S. patent, after payment of the Government Issue fee. This is generally about a 60-day process.
BioMedReports: Does it trigger any milestone payments to ILNS?
Dr. Chain: Upon grant of the patent, Intellect Neurosciences will request a $2 million milestone payment from a top tier global pharmaceutical company based on its licensing agreement with the company.
BioMedReports: After the patent is issued, does it affect how long it will take to start a Phase I trial or do you have something ready?
Dr. Chain: The issuance of the patent is not related to clinical development time-lines. The patent is held by Intellect Neuroaciences. Ponezumab is being independently developed by Pfizer that already completed several Phase I and Phase II clinical trials.
BioMedReports: Is this Ponezumab also going to work to clear the brain of plaques caused by a protein called beta amyloid?
Dr. Chain: Ponezumab is designed to reduce soluble beta amyloid circulating in the brain fluids, not the plaques which occur later in the disease process. The idea is to prevent accumulation of soluble beta amyloid before it can form plaques.
BioMedReports: Okay so for those investors getting used to the terminology on Alzheimer drugs, is this a new drug or a well known drug together with Bapineuzumab?
Dr. Chain: Ponezumab is well known. In fact, Pfizer is generally believed to have spent more than half a billion dollars to buy Rinat Neurosciences in 2006 mainly for this antibody.
BioMedReports: There has been quite a bit of news coverage and attention being paid to the upcoming clinical trial results involving Bapineuzemab. What effect might this sort of coverage have on your company?
Dr. Chain: We believe that any coverage regarding our platform technology is beneficial to the company, especially with regard to the investor public’s understanding of our relationship to the various compounds under investigation.
BioMedReports anticipates that ILNS and their licensing partners will continue generating substantial news headlines in the days and months ahead. Given the magnitude of the Phase III clinical trials and pending data, this is one penny stock that may be worth keeping an eye on.
Disclosure: Author M.E. Garza has been long ILNS for a couple of years and does not plan to sell his shares for some time