[Click eStock] BridgeBio's New Drug Candidate Enters US Phase 2 Clinical Trial... Potential for Technology Re-Export

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment predicted on the 25th that Bridge Biotherapeutics' idiopathic pulmonary fibrosis (IPF) new drug candidate 'BBT-877', which was returned after being licensed out to Boehringer Ingelheim, is scheduled to start a Phase 2 clinical trial in the United States, increasing the likelihood of deals with global pharmaceutical companies.

Shin Hyo-seop, a researcher at DB Investment Securities, stated, "BBT-877 was not returned due to issues during or after Phase 1 clinical trials, but was returned according to Boehringer's internal guidelines despite producing excellent results," adding, "With the resumption of the U.S. Phase 2 clinical trial, the risks are considered resolved."

He continued, "If discussions related to license-out (L/O, technology export) proceed, since it is currently at the Phase 2 stage, the deal size could exceed the one made with Boehringer," and explained, "With the expiration of Ofev's patent in 2024 approaching, and the existing treatments?Boehringer's Ofev ($2.9 billion in 2021) and Roche's Esbriet ($1.2 billion in 2021)?continuing to expand indications and market growth, expectations for commercialization are high."

Bridge Biotherapeutics is a new drug development specialized company, established in September 2015 and listed on the KOSDAQ market in December 2019 through a growth special case. The company adopts a business model of acquiring exclusive global rights (L/I, license-in) for promising new drug candidates in early research or preclinical stages, developing them clinically, and then transferring exclusive rights again (L/O) to global pharmaceutical companies.

So far, there have been two technology transfer achievements with Daewoong Pharmaceutical and Boehringer Ingelheim (hereafter Boehringer).

In July 2019, the company licensed out the rights of BBT-877 to Boehringer Ingelheim for 1.1 billion KRW euros, but it was returned in November of the following year due to genetic toxicity issues. However, last month, the U.S. Food and Drug Administration (FDA) resolved the toxicity issues and approved the Phase 2 clinical trial.

Researcher Shin said, "Since various R&D achievements are expected this year, it is a time when corporate value needs to be re-evaluated," and added, "If a technology transfer contract is signed, considering clinical progress, it is expected to exceed the 2019 Boehringer deal size."

Additionally, there is a forecast that expectations for BBT-176, a treatment targeting the C797S triple mutation caused by resistance to third-generation EGFR targeted anticancer drugs, could also serve as momentum for the stock price. Researcher Shin stated, "According to recently announced data, four patients who received 160 mg and 320 mg doses for more than six months without disease progression were observed, and partial remission was confirmed in two of them," adding, "This data included patients with the C797S triple mutation, suggesting the potential for future use as a treatment option."

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