Delivering an Anti-Cancer Payload with Nanoparticles

Insert Therapeutics has treated its first patient with its first drug candidate, called IT101, which consists of nanoparticle-encapsulated camptothecin, an anticancer agent. While camptothecin has been known as a potential chemotherapy agent for years, it has never been used in human patients previously because of solubility problems. Insert solves this problem by wrapping up the drug in a proprietary linear cyclodextrin polymer. Cyclodextrin is essentially a form of starch and so there are few safety concerns with this type of delivery system. The cyclodextrin system was invented by Mark Davis, a CalTech chemistry professor. Animal studies have been promising, with complete remission seen in a type of lung cancer.

Although camptothecin itself is insoluble, analogues of the compound are already used in chemotherapy, with a combined worldwide market of about $1 billion. It remains to be seen whether Insert’s IT101 is an improvement over the drugs that are already marketed.

Insert is majority owned by Arrowhead Research [NASDAQ-ARWR], which is a component of the Edwards Real Nanotech Index (ERNI).

Insert hopes to mimic the success of Abraxis Bioscience (another ERNI component), whose FDA-approved product Abraxane consists of the chemotherapy drug paclitaxel delivered using an albumin-based nanoparticle. Before Abraxane, delivery of paclitaxel required a very noxious solvent and patients had to be maintained on steroids in order to tolerate the drug.

Speaking of Abraxis, it is the subject of a favorable analysis by Mark Phillips, The 10Q Detective. On the downside though, he accuses CEO Patrick Soon-Shiong of having a “Martha Stewart” complex and complains about his $825,000 salary and the company’s provision of security for him and his family. But here is the money quote: “Nonetheless, the Common Stock price of Abraxis is such a screaming BUY—we do not mind looking askance at this piggish display.”

Phillips points out that Goldman Sachs calcualated an enterprise value of $62.53 per share for Abraxis. The stock was up $1.30 yesterday, to all of $21.59.

ERNI Down Again

The Edwards Real Nanotech Index (ERNI) was down again last week in line with the rest of the market, with fears of WWIII getting underway in the Middle East. Despite the neocon’s wetdreams, we think this is an unlikely outcome. And ERNI rallied strongly with the rest of the market yesterday, as the Dow advanced over 200 points on Fed chairman Ben Bernanke’s calming testimony before the Senate.

ERNI component NVE Corp. announced its earnings today. Product sales were up 71% over the prior year to $3.05 million. Income per share was 19 cents a share versus 9 cents in the year earlier period. The company has retired all its debt and has increased its cans and investments by almost $900,000 in the quarter. Hard to argue with a quarter like that. The stock opened up over a dollar higher as the market seemed to like the numbers.

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