SMALL CAP IDEA: Scancell will become a major player in the field of cancer immunotherapy

For ambitious junior life sciences companies, the end goal is often to secure partnerships with well-funded industry players to propel drug development to commercial success.

For many smaller innovators, bringing a promising molecule from the laboratory, through clinical testing, to market is a huge challenge and takes a lot of time and financial resources.

For Scancell Holdingsa British immuno-oncology specialist, has taken on this challenge with two notable partnerships worth a potential £940 million ($1.2 billion) – both with Danish biotech company Genmab.

Genmab

The latest agreement grants Genmab exclusive global rights to develop and commercialize a monoclonal antibody from Scancell’s GlyMab platform.

Analysts estimate an upfront payment of approximately $5 million, in addition to milestone payments related to development, regulatory and commercial performance. Scancell will also earn royalties on net sales of products resulting from the collaboration.

The licensed antibody is one of five antibodies in Scancell’s portfolio that target glycan structures associated with cancer. These partnerships underline the potential of Scancell’s GlyMab platform, although the company’s ambitions extend far beyond these agreements.

SCIB1: Progress in advanced melanoma

Scancell has made significant progress in developing SCIB1, its lead product targeting advanced melanoma, a form of skin cancer.

The SCOPE trial, which tested SCIB1 in combination with the checkpoint inhibitors ipilimumab and nivolumab, has shown promising results in 25 patients.

After six months, 80 percent of participants experienced no disease progression, while 20 percent achieved complete remission. The overall disease control rate – including stable disease or tumor shrinkage – was 84 percent, and 72 percent of patients showed significant tumor reduction, which improved over time.

These results compare favorably with outcomes of checkpoint inhibitors alone, which typically achieve a progression-free survival of 65 percent and a complete remission rate of 16 percent. The data suggest that SCIB1 improves both durability and effectiveness of treatment.

Dr. Heather Shaw, an oncologist at University College Hospital in London, praised SCIB1 for its potential to improve first-line therapies for advanced melanoma patients while maintaining a strong safety profile.

Scancell’s chief scientist, Professor Lindy Durrant, highlighted progression-free survival as a key metric for future trials, stating: ‘The SCOPE trial continues to deliver excellent results with a PFS of 80 per cent and five patients now achieving a complete response.’

Benefits of SCIB1

SCIB1 is the only off-the-shelf DNA cancer vaccine currently in development for melanoma. Unlike personalized cancer vaccines, which are tailored to individual patients, ready-made vaccines are expected to be cheaper, easier to manufacture and more readily available.

Analysts at Panmure Liberum have noted the potential benefits of this approach and predicted that it could make Scancell a leader in this emerging field. The ease of use is increased by the collaboration with PharmaJet, a specialist in needle-free injections.

Modes-1

In addition to SCIB1, Scancell is developing Modi-1, another phase II agent that initially focuses on renal cell carcinoma (RCC).

Data from the ModiFY trial, which combines Modi-1 with checkpoint inhibitors for RCC, is expected in the first half of 2025.

New leadership

Last month, Scancell appointed Dr Phil L’Huillier as CEO, succeeding Professor Durrant.

L’Huillier brings a wealth of experience, having previously led CatalYm, where he took products from Phase I to Phase IIb and raised more than $200 million.

He has also been involved in the development of several biotech companies, including Achilles Therapeutics and Blink Therapeutics.

Panmure Liberum welcomed his appointment, stating: ‘We expect the appointment will add business development experience to Scancell’s solid scientific foundation and enable the maturation of the company as it reaches its next phase.’

Last week L’Huillier hit the ground running when he unveiled plans to raise up to £9.5 million in new investment, consisting of a placing of new shares at a price of 10.5p each raising at least £8.5 million will deliver and a store offering of stock.

Together with the money already in the bank (£9.1 million at last count), the company believes it will have sufficient resources to continue development efforts until the end of 2026.

What’s it all worth?

Panmure Liberum rates Scancell shares a ‘buy’, with a price target of 23.3 cents – ​​a 65 percent premium to the current price. The company believes that positive clinical data could lead to a revaluation of the stock, especially as awareness grows around the potential of cancer vaccines.

“Growing awareness of the potential in cancer vaccines translates into an increase in Scancell’s profile,” Panmure noted.

With two major partnerships, a strong pipeline and a new CEO poised to drive the next phase of growth, Scancell is positioning itself as a key player in the competitive and evolving field of cancer immunotherapy.

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