New York, NY / ACCESSWIRE / June 17, 2014 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued a 4Q 2013 update note on DelMar Pharmaceuticals, Inc. (OTCQB: DMPI), a biotechnology company focused on proven cancer therapies in new orphan drug indications where patients are failing modern targeted or biologic treatments.
"We impressed by DMPI’s continued execution and achievement of key milestones, especially with respect to VAL-083.," commented Ajay Tandon, CEO of SeeThruEquity. "The company has also closed a lead order and filed a tender offer for its outstanding investor warrants. On June 6, 2014, 3.65mn investor warrants were exercised at a price of $0.65 per warrant for 3.65mn in DMPI common stock. DMPI received gross proceeds of $2.4mn from the lead order and estimates that it has sufficient funding currently in place through December 2015E."
Highlights for the quarter are as follows:
- VAL-083 updates. Subsequent to the end of 1Q14, DMPI presented interim clinical data on VAL-083 at the American Association of Cancer Research (AACR) Annual Meeting in April and at ASCO in May. At ASCO, DMPI reported that one of two GBM patients in cohort 6 (30mg/m2) exhibited stable disease after one cycle of treatment. No drug-related serious adverse events had been detected with VAL-083, and maximum tolerated dose (MTD) had not been reached at doses up to 30mg/m2. Enrollment and evaluation of Cohort 7 (40mg/m2) is ongoing. If the MTD is not reached in cohort 7, DMPI would be prepared to file a protocol amendment with the FDA to allow dosing beyond 40mg/m2. The pharmacokinetics of VAL-083 are linear and consistent with previous published data suggesting that concentrations of the drug being obtained are effective against glioma cell lines in vitro. DMPI has also presented data demonstrating that the cytotoxic activity of VAL-083 is independent of MGMT, the enzyme believed to cause resistance to the current front-line therapy in the treatment of GBM.
- Warrant tender offer shores up capital base. On June 9, 2014, DMPI announced that it had completed closing of a lead order and filed a tender offer for its outstanding investor warrants. DMPI received gross proceeds of $2.4mn from the lead order and estimates that it has sufficient funding through December 2015E. The exercising of the remaining 9.2mn warrants (with potential proceeds of $6mn) would enable DMPI to fund its VAL-083 registration trial and prepares the company for a potential uplisting to NASDAQ. DMPI reported $3.5mn in cash on its balance sheet as of March 31, 2014.
- SeeThruEquity maintains its price target of $4.53.
The note is available here: DMPI 1Q 2014 Update. SeeThruEquity is an approved equity research contributor on Thomson First Call, CapitalIQ, FactSet, and Zack’s. The report will also be available on these platforms.
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About DelMar Pharmaceuticals, Inc.
DelMar Pharmaceuticals was founded in 2010 to develop and commercialize proven cancer therapies in new orphan drug indications where patients are failing modern targeted or biologic treatments. The Company's lead asset, VAL-083, is currently undergoing clinical trials in the United States as a potential treatment for refractory glioblastoma multiforme (GBM), the most common and aggressive form of brain cancer. VAL-083 benefits from extensive clinical research sponsored by the U.S. National Cancer Institute (NCI), and is currently approved for the treatment of chronic myelogenous leukemia (CML) and lung cancer in China. Published pre-clinical and clinical data suggest that VAL-083 may be active against a range of tumor types via a novel mechanism of action. For more information, please visit http://www.delmarpharma.com.
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