Medicus Pharma's 'Savvy' Antev Deal De-Risks Pipeline Expansion, Enhances Near-Commercial Portfolio

In April, Medicus Pharma Ltd. MDCX agreed to acquire all of Antev’s issued and outstanding shares on a share exchange.

Antev is a clinical-stage biotech company developing Teverelix, a next-generation GnRH antagonist, as the first in-market product for cardiovascular high-risk prostate cancer patients and patients with first acute urinary retention (AURr) episodes due to an enlarged prostate.

Medicus will negotiate and enter into a definitive agreement with Antev in exchange for 2.67 million (or approximately 19%) shares.

Antev shareholders will be entitled to receive up to approximately $65 million in additional contingent consideration tied to potential future FDA Phase 2 and New Drug Application approvals.

The transaction is expected to close before the end of June.

D. Boral Capital on Monday raised the price target from $14 to $27, with a Buy rating.

“With no approved drug for AUR recurrence and an estimated $2 billion addressable U.S. market, Teverelix has the potential to become a first-in-class therapy with a differentiated safety and dosing profile,” said analyst Jason Kolbert. “We view this transaction as a savvy, de-risked pipeline expansion that materially enhances Medicus’ near-commercial portfolio and positions the company for accelerated value creation.”

He added that Medicus is expanding into men’s health and urology by acquiring a first-in-class drug with low trial costs and a focused sales strategy targeting urologists.

Since this new program doesn’t overlap with Medicus’ existing ones, the deal fits well with its overall strategy. It could add value, especially if Teverelix moves smoothly into Phase 3 trials and hits the market before 2030.

In March, Medicus Pharma announced a positively trending interim analysis for the SKNJCT-003 Phase 2 clinical study to non-invasively treat basal cell carcinoma of the skin (BCC).

The interim analysis shows the clinical study SKNJCT-003 is trending positively, with a proportion of subjects with complete clinical clearance of more than 60%.

The analysis also shows that the investigational product, D-MNA, was well tolerated for both dose levels, a low-dose group receiving 100 ug of D-MNA and a high-dose group receiving 200 ug of D-MNA, in all participants so far enrolled in the study, with no dose-limiting toxicities (DLTs) or serious adverse events (SAEs).

The company plans to submit the interim analysis to the United States Food and Drug Administration (FDA) as part of a package seeking a Type C meeting with the FDA in Q2 2025.

Price Action: MDCX stock is up 15.8% at $5.31 at the last check on Monday.

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