In an interview with Benzinga, Oragenics OGEN CEO John Bonfiglio discussed the company’s business and opportunities that lie ahead.
Bonfiglio started by explaining Oragenics’ most active business line: the development of a new bacteriocin called lantibiotics. Bacteriocin are produced by bacteria to inhibit the growth of similar or closely-related bacterial strain.
The company uncovered the possibilities of working with lantibiotics years ago, but manufacturing difficulties had kept the company (and any competitors) from making progress with a drug that could be very effective in fighting resistant bacteria. However, a recent deal with Intrexon XON changed everything.
“That collaboration has been very successful,” stated Bonfiglio when describing that manufacturing is now possible. “We have probably 50 to 60 new analogs, other than MU1140 [the company’s main drug], that we are screening right now. We are rapidly coming to the point of choosing one to put into the clinic; the goal is to get it to the clinic next year.”
Shares of Oragenics shot up more than 10 percent after the company announced progress on identifying a lead clinical candidate in early May.
Bonfiglio continued, describing how the potential multi-billion dollar drug would likely be commercialized.
“I think the market will be very good to this product… taking it all the way to commercialization would be optimal, but it is very difficult to be able to get the financing to do that unless it is a very successful drug." He continued, "A lot of companies our size would be looking to find a partner for the first entity to help fund the pipeline going forward; that’s probably what we’ll do.”
Bonfiglio emphasized, however, that it is too early to tell for certain and that the company is keeping all options open.
Bonfiglio explained the other major part of Oragenics' business: genetically-modified probiotics.
“It is essentially taking a bacteria and genetically manipulating it so it will produce a therapeutic agent," explained Bonfiglio, "and using that agent to fight symptoms of the disease.”
Specifically in this case, diseases of the oral cavity. Expansion of this business line was significantly accelerated by an additional partnership with Intrexon. The purpose of these probiotics is to restore the natural balance of beneficial bacteria.
Although it is not a primary focus, Oragenics also has an over-the-counter offering currently on the market to support oral health
“We tried putting up a strategic marketing program with it last year," said Bonfiglio, "but unfortunately the program didn't work as well as we would have liked, so sales were disappointing. We are still looking for a way of mass marketing this ourselves, or we are willing to go other routes.”
Although shares have fallen in 2014, the Street is optimistic on Oragenics’ future since the first partnership with Intrexon was announced; shares are up 62 percent.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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