Overview

Newland Global Group (NGG) is delighted to present an investment opportunity, on behalf of our client, within the healthcare sector for the early detection of prostate cancer. 

Our client is an immuno-oncology company founded in Sydney in 2007, which has developed a definitive diagnostic blood test for the early detection of prostate cancer. Clinical studies have demonstrated significant improved performance over existing prostate cancer testing with a 95% Sensitivity Result. Our client has global reach through partnerships with universities, research institutes, and companies.

Our client’s experience is backed up by independent experts in oncology from around the world, awards of multiple research grants, a major innovation prize, and investment backing of over A$27 million to date.

Our client owns an extensive patent estate protecting their distinctive technology. All intellectual property relevant to their technology is owned by them.

Our client is an unlisted public company, apart from equity investment, other sources of funding include:

• an Australian Government Accelerating Commercialisation grant to help validate the technology and support the rollout;

• Australian Government R&D Tax Incentives;

• a National Health and Medical Research Council Development Grant with QUT; and

• ARC Hub award.

Our client meets the following criteria:

1. No science risk, the science has been proven, in other words NO further research is to be undertaken

2. Experienced Board

3. Secured IP position - IP difficult to copy

4. Large target market

5. Cash liquidity event within two years and exit within 5 years.

Testing for prostate cancer – quick, non-invasive, highly specific

• Our clients’ technology is a blood test that uses their patented algorithm together with other biomarkers to estimate the risk of a patient having aggressive prostate cancer

• Our clients’ technology is designed to assist urologists in making the decision to recommend a patient for a biopsy or to recommend some form of active surveillance monitoring.

The problem in current prostate cancer diagnosis

• Prostate Cancer is the most common cancer in men

• The PSA test is commonly used to detect prostate cancer however elevated PSA levels can be caused by factors other than prostate cancer

• Six men in ten with elevated PSA are needlessly subjected to an unnecessary prostate biopsy

• Prostate biopsies are invasive, unpleasant and sometimes hazardous (in relation to infection). This can make a man with elevated PSA reluctant to undergo a potentially unnecessary procedure. Additionally, prostate biopsies are expensive

• The estimated over-diagnosis using PSA for population screening in the USA (US Cancer Screening 2018) is 23-29% for Caucasian men and 35-44% for African-American men.

The solution for prostate cancer diagnosis

• Our clients’ technology can assist urologists in making the decision to refer a patient to biopsy by estimating the risk of the patient having aggressive prostate cancer. The Test is a simple blood test that provides an answer to the physician on the patient’s cancer risk within 48 hours. The test works by measuring several protein biomarkers including a proprietary marker owned by our client

• The test detects a protein that is only present on cancer cells

• The test is 95% accurate – far higher than standard PSA test – reduces unnecessary biopsies

• The test provides a YES/NO to cancer and if Yes – critically whether it is aggressive or non-aggressive.

The test will result in a more reliable early detection of prostate cancer with;

• Significant healthcare cost savings

• Less patient anxiety and discomfort

• Reduced risk of infection from prostate biopsies

Compelling advantage

• The technology offers the ability to address a large unmet need in prostate cancer diagnosis and patient monitoring a USD$3 billion testing market.

The Opportunity

• A prostate diagnostic test with high specificity

• Provide a significant reduction in healthcare expenditures

• Improving quality of outcomes for patients and medical professionals

• Initial rollout of our clients’ Test in the USA will be via the Laboratory Developed Test (LDT) pathway. This approach enables CLIA certified “High Complexity Laboratories” to internally validate the Test in their own laboratory and make the test available to their referring clinicians. Our client have signed a distribution/royalty agreement with a US company to distribute through their labs. The company is seeking broader independent FDA accreditation to supplement the agreement from the funds being raised. USA reimbursement is in place which will minimise the out of pocket expenses of patients.

Our client requires funding to:

(a)    retire the Australian Govt substantial equity position in the company at market competitive pricing (it has been in place for 10 years), and

(b)   to raise further working funds to pursue the commercialisation in key markets (China/USA/India) and will allow finalisation of manufacturing as well as rollout of the test via centralised laboratories.

Investment exit

The Company is working to create a liquidity event for investors via a trade sale, or alternatively a public listing, within a three to five-year time horizon. Presently, our client is engaged in discussions with three major diagnostic companies and three mid-tier urological cancer diagnostic companies under NDA for anticipated license agreement which could occur in 2020/21. This execution of a licence agreement will see a weighty return of capital and capital gain flowing to shareholders.