MedPacto to raise ￦100 billion for research of rare tumor therapies

MedPacto said Thursday that it would raise 100 billion won ($90 million) by issuing convertible preferred stocks and privately placed convertible bonds to conduct the clinical trials of Vactosertib that treats rare and intractable diseases.

MedPacto, a biomarker-based new drug developer, explained that it could draw investment swiftly, as Vactosertib and the clinical development plan received positive feedbacks.

MedPacto will raise 100 billion won by issuing bonds to conduct clinical trials of cancer therapy, Vactosertib, and win the U.S. Food and Drug Administration's orphan drug status.

The combination therapy of Vactosertib and imatinib for the desmoid tumor is undergoing review for receiving orphan drug status from the U.S. Food and Drug Administration. The company aims to obtain the seven-year exclusive rights granted to orphan drugs and make use of expedited FDA programs such as the Fast Track.

For instance, Epizyme, a clinical-stage biopharmaceutical company based in the U.S., developed Tazverik to treat epithelioid sarcoma and received orphan drug designation from the FDA. The regulator also granted official approval only with the study results of phase 2 clinical trials on 60 patients.

As therapies for rare and intractable diseases can win approval through clinical trials with a relatively smaller number of participants, MedPacto will submit the investigational new drug program to obtain approvals from several countries, including Korea and the U.S., the company said.

In addition to targeting orphan drug designation, MedPacto plans to extend the indications of Vactosertib to treat two rare and intractable diseases by running clinical trials in 2021.

The orphan drug market is rising as an interesting unexplored territory globally thanks to its marketing power despite lower development costs.

“We will pursue a two-track strategy, by promoting deals to transfer our combo therapy of immune checkpoint inhibitor technology in treating colorectal and non-small cell lung cancer, and targeting the early commercialization of Vactosertib via clinical trials for rare sarcomas such as a desmoid tumor,” a MedPacto official said.