Bionomics aims to leapfrog into later stage trials

Bionomics (ASX: BNO) CEO Deborah Rathjen outlined the company's strategy for growth at a briefing this week, noting that the company aimed to become a AUD$200 million company within three years.

Key to the strategy is the development of a robust portfolio of clinical and preclinical development-stage compounds, both through internal development and through in-licensing, partnering or merger and acquisition activity. The company plans to retain its focus on CNS diseases and cancer.

Late last year, the company acquired French contract research organisation Neurofit, which specialises in preclinical testing of central nervous system drug candidates.

"Neurofit has given us access to the European market, it's given us an industry standard capability in assessing preclinical compounds, it has given us calling cards to the major pharmaceutical companies and biotech companies in the CNS arena. Neurofit is a small company but a very capable and credible company. Its clients include Novartis, Serono and Biogen, and a raft of others of similar standing we can't name," Rathjen said.

"It's been a very strategic opportunity for us, and clearly an important one."

Rathjen said that, with 80 per cent of its activity in CNS drug development, Bionomics had needed to expand its capabilities in order to accelerate its drug development programs, allowing the company to rapidly evaluate compounds for suitability as a drug candidate. The company's models for epilepsy would be transferred to Neurofit to "industrialise" them, she said.

In the mean time, the company is pursuing other opportunities to rapidly progress its pipeline, through in-licensing and M&A activity.

"We're looking for products in our sweet spot in the CNS area and cancer. We're looking only at Phase I and phase II compounds in terms of where we're moving the company ultimately, we have very strict selection criteria, and a very rigorous due diligence program," Rathjen said.

"We have three opportunities under active evaluation currently, three opportunities that have risen to the top of our list, after a process which has involved looking at some 20 or so opportunities over the course of the last year or so."

Rathjen said the company was looking for opportunities that would add real value to the company.

"We believe that we can bring an opportunity that satisfies our selection criteria, and passes through our due diligence process -- that we can conclude that transaction this year. That would really put us on a different path, it would be a transforming event for Bionomics," she said.

It marks a distinct shift away from Bionomics' previous focus on targeted genomics, which formed the basis of its origins as a platform technology company. Rathjen said that the company had not embarked on any major gene discovery programs for some time, preferring instead to develop what it had already identified. But she noted that the company's own pipeline was built on its genomics discoveries.

She also said that Bionomics' experience with genomics could lead to insights when evaluating compounds for acquisition.