In March 2017, PureTech Health (OTC: PTCHF; London: PRTC) licensed two clinical-stage programs targeting the rapamycin complex 1 (TORC1) pathway from Novartis (NYSE: NVS), placing them in a subsidiary called resTORbio, with an initial focus on diseases related to immunosenescence, an age-related decline in immune function. According to an article published on Nature by Lynne Chantranupong and David M. Sabatini of the Whitehead Institute, the TORC1 pathway is “the master growth controller that integrates diverse environmental inputs to coordinate many metabolic processes.”
Novartis had pioneered this mechanism with its Afinitor (everolimus) mTOR inhibitor product for cancer, which made $775 million in sales last year, mainly from use in breast cancer, according to Phil Taylor at FierceBiotech. After Series A and Series B rounds that raised a total of $65 million last year, resTORbio is anticipated to have its IPO this week, looking to raise $85 million at the midpoint of the filing range for a post-money valuation of about $408 million. In addition to PureTech and Novartis, the company’s other investors to date include OrbiMed, Fidelity, Rock Springs Capital, Quan Capital and Nest Bio.
Source: resTORbio
The company’s near term focus is on respiratory tract infections (RTIs) in the elderly.
- RTIs are the fifth leading cause of death in people age 85 and over and the seventh leading cause of death in people age 65 and over.
- 7% of people aged 85 years and over go to the emergency room with RTIs each year.
- Two-thirds of people aged 85 and over who go to the ER for infection-related reasons are hospitalized, and once hospitalized, one-third of people aged 85 and over are admitted to a nursing home.
- The majority of RTIs are caused by viruses for which there are no approved therapies. Despite this, antibiotics are often prescribed indiscriminately, which may cause side effects related to antibiotic use and contribute to the growing global problem of antibiotic resistance.
The company’s Phase 2a clinical trial in 264 elderly subjects demonstrated that six weeks of treatment with its lead candidate, RTB101, alone and in combination with Afinitor, met a prespecified endpoint of reducing the incidence of infections by 33% and 38%, respectively, during a period of one year following initiation of therapy. resTORbio is currently evaluating RTB101 alone and in combination with Afinitor in a Phase 2b clinical trial for the reduction in the incidence of RTIs in the elderly and expects to report top-line data in the second half of 2018.
Source: resTORbio
The IPO is being led by BofA Merrill Lynch, Leerink and Evercore ISI. The S-1 filing indicates that some of the company’s current shareholders have indicated an interest in purchasing up to $35 million of the deal. Given the rapid financial progress the company has demonstrated in less than a year, and the pedigree of the current investors, we’ll be watching resTORbio with keen interest as it navigates public waters.
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