Investor Relations Captor Therapeutics ®
Information on the status of the Company's projects and submission of phasing applications
Current report no. 55/2023
Drafting date: 13 November 2023
Subject: Information on the status of the Company's projects and submission of phasing applications
Legal basis: Article 17(1) MAR - confidential information.
The Board of Directors of Captor Therapeutics S.A., based in Wrocław (the "Company"), announces that , after reviewing the possibility of further implementation of the Company's projects, and taking into account the guidelines of the National Centre for Research and Development ("NCBiR"), the Company decided to apply on 13 November 2023 for the so-called phasing of certain projects and for the final payment concerning project CT-05 ("Application of targeted protein degradation technology in the treatment of psoriasis and rheumatoid arthritis").
Applications for the so-called phasing of projects (i.e. splitting a project into phases and the possibility of financing an uncompleted phase in the next EU funding cycle) concern projects CT-01 ('Discovery and development of a drug candidate for the treatment of hepatocellular carcinoma to eliminate cancer stem cells by induced degradation of an oncogenic transcription factor') and CT-03 ('Induction of apoptosis using low-molecular-weight chemical compounds as a therapeutic intervention in cancer'), which, according to the current grant agreements, should be completed by the end of 2023. The applications were submitted as part of the SMART Pathways - Phased Projects initiative, which enables funding to be obtained for Phase II projects selected for funding based on the provisions for the 2014‑2020 perspective of the 2014-2020 Operational Programme for Intelligent Development (OPIR).
The company has made proposals based on the following key parameters:
- CT - 01 - extension of the project until 31.03.2026, amount of funding to be used from 1 January 2024 (i.e. within the extended project duration) - 6,766,157.95 PLN; and
- CT - 03 - extension of the project until 31.07.2026, amount of funding to be used from 1 January 2024 (i.e. within the extended project duration) - 4,976,940.75 PLN.
Notwithstanding the maximum end dates for the completion of the projects as stipulated above, the Company maintains the validity of the project timetable as presented in the Company's strategy (Company Strategy Next Steps 2023-2025 published by current report No. 7/2023 dated 6 March 2023).
The Company's decision to submit a final payment request relating to the CT-05 project is mainly due to delays in the implementation of this project, which result, in the Company's opinion, at this point in time, in the Company's inability to achieve further milestones by the deadline stipulated in the grant agreement, i.e. by the end of 2023. The above delays are primarily due to objective circumstances beyond the Company's control, such as lengthy chemical synthesis and complex in vivo disease models. At the same time, the Company assesses that the submission of the phasing request for the CT-05 project is not justified because completion of phase I clinical trials within the assumed timelines is unlikely. The Company, to the best of its knowledge, assesses that it will not be obliged to return any funds received and used to date. Notwithstanding the above, in the Company's opinion, the CT-05 project, as well as the therapeutic indications, i.e. psoriasis and rheumatoid arthritis, represent a very attractive area for pharmacological intervention and, above all, there is a highly unmet market need in this area. Consequently, the Company, despite the submission of the application to the NCBiR, intends to continue the research and development of CT-05 using its own resources, with the Company assessing that the expenditure for further implementation of the project will not be significant. At the same time, in accordance with the Company's strategy (Company Strategy Next Steps 2023-2025 published in current report No. 7/2023 of 6 March 2023), the Company anticipates that the expected proof-of-concept results in the acute inflammation model will be available by the end of 2023 and that this will lead to discussions with large pharmaceutical companies regarding the commercialisation of the project.
The Company will report further progress on the Company's projects in accordance with regulatory requirements.