Chimeric Therapeutics: Building a Pipeline of Expertise

Two world-class partners in discovery
CHM is the only company listed on the ASX conducting human clinical trials with CAR T cell therapy. CHM has licensed the CLTX CAR T from the City of Hope Cancer Centre in Los Angeles for the treatment of patients with glioblastoma, as well as to research additional indications for the CLTX CAR T. The CLTX CAR T therapy is in a Phase I clinical trial which has been designed with four dose levels and studies both single and dual routes of administration of cells. In addition, CHM has exclusively licensed the pre-clinical phase CDH17 CAR T from the University of Pennsylvania, the leading university for cell therapy patents. CDH17 CAR T is being studied in treatment of gastrointestinal cancers and neuroendocrine tumours. The CHM strategy is to build a pipeline of therapies which can help mitigate the high risk associated with biotechnology discovery, development and commercialisation. CHM has assembled a team with significant depth of experience in CAR T cell therapies, including experience with four of the five CAR T cell therapies currently approved by the FDA. The company is also actively looking for additional opportunities.

Several milestones reached since IPO
Since listing, CHM has passed several milestones including: adding significant expertise to the leadership team; receiving US FDA Investigational New Drug (IND) approval to begin Phase I trials with its CLTX CAR T cell therapy; commencing the CLTX CAR T Phase I trials including the successful first dose cohort of four patients with a 75% disease control rate with up to eight weeks of durability, no dose limiting toxicities, and tumour recurrence prevented at sites where CLTX CAR T cells were infused while tumour recurrence occurred at sites without CLTX CAR T cell infusion (ASX announcements, 15 and 22 November 2021); initiating the second dose cohort for the CLTX CAR T Phase I trial following early encouraging results from the first dose; licensing a new CAR T therapy from the University of Pennsylvania; having its patent covering CLTX technology used in CHM 1101 approved by the EU patent authority; and has commenced manufacturing of its CDH17 plasmid (the first step toward readiness for a Phase I trial).

Mid-case valuation of $0.74/share, range of $0.50-$0.93/share
We have applied a risk-weighted valuation to our forecasts for the GBM opportunity, arriving at a valuation range of $0.50-$0.93/share with the mid-point at $0.74/share, based on the current share count. On a fully diluted basis for all options on issue, the mid-point valuation is $0.69/share. Our valuation is solely based on the opportunity for CHM 1101 for recurrent glioblastoma. Further upside could be obtained from the advancement of CHM 1101 to Phase II with GBM; the commencement of a Phase I frontline GBM study; the application of CHM 1101 to other indications; the advancement of CDH17 CAR T from pre-clinical stage to Phase I and beyond; and from the acquisition of additional portfolio opportunities.