Lixte Biotechnologies Needs $11 Million From Investors to Push Them to Phase 2
OTC-listed Lixte Biotechnology Holdings filed last Thursday with the SEC to uplist to Nasdaq, raising $11 million in an initial public offering. The Phase 2 biotech using biomarker technology to develop protein inhibitors for cancer, seeks to speed up enrollment in a phase 1b/2 myelodysplastic syndrome (MDS) trial that is lagging behind expectations. The company had earlier completed a phase 1 trial of LB-100, demonstrating antitumor activity in humans. The trial's start is slated for the third quarter of 2021, with results expected in 2023.
Prior to the filing, the company has developed two series of pharmacologically active drugs, the LB-100 series, and the LB-200 series. The LB-100 series targets different kinds of cancer, with the potential for metabolic and vascular diseases. The LB-200 series, on the other hand, has shown possibilities in the treatment of chronic hereditary disorders.
The lead compound in the LB-100 series is protein phosphate 2A (PP2A), which plays a crucial role in regulating processes such as cell division, DNA-damage-response, and homologous recombination repair point to the potential of the enzyme as a cancer drug target. However, concerted efforts aimed at treating cancers by drugging PP2A dating back to decades have failed to bring about the establishment of the target as a significant part of the oncology landscape.
Lixte, based in the East Setauket, New York, was established in 2005 and is currently listed on the OTC under the symbol “LIXT." The company plans to use additional funds to add two extra MDS centers to the phase 2 part of the trial to accelerate enrollment. The firm expects to mobilize cash reserves of $8.4 million if it meets the midpoint of its stock offering price range.
WestPark Capital is the sole bookrunner on the deal.