From the CEO

The oversubscribed issue in May showed support for Kancera’s new operational plan and resulted in a capital contribution of approximately SEK 60 million. Thus, we can now put the new plan into action which will influence both laboratory studies and the preparations for clinical trials. The goal is to take at least one of Kancera’s projects into clinical trials for cancer or cancer pain in the next 18-24 months. In parallel, we intend to validate a broader use of the drug candidates from the Fractalkine and ROR projects to demonstrate the projects’ full commercial potential and accelerate the HDAC6 and PFKFB3 projects towards selection of candidate drug.
During the summer, we have seen progress especially in the Fractalkine project where we are now well on the way to build the plan for the initial clinical study and compile the documentation required for an application for a clinical trial. In the HDAC6 project, studies show that Kancera now has developed highly potent and selective compounds that are efficiently taken up in the body following per-oral administration. Thus, the project takes steps towards the selection of a candidate drug according to plan.
In order to strengthen Kancera’s administrative structure Kancera Förvaltning AB (KFAB) has been formed. KFAB is a wholly owned subsidiary of Kancera AB, whose operations is focused mainly on the management of financial instruments, including for example, warrants. In connection with the formation of KFAB, Kancera chose to switch to the IFRS accounting system for groups which also facilitates a possible future listing on NASDAQ's other marketplaces.
Thomas Olin 
CEO Kancera AB

With the start of the procurement of clinical contract companies for the clinical study of the Fractalkine receptor antagonist KAN0440567, we now proceed from plan to action in line with Kancera’s prospectus from May 2016. Before applying for authorization of a clinical trial, we focus on the formulation (i.e. the product, e.g. capsule) of KAN0440567 that is to be given to humans. When this product is tested and ready we intend to submit the application for authorization of a clinical trial to the relevant authority (the Medical Products Agency in Sweden or equivalent authority in another EU country) and for the corresponding ethical permission.

Also in the ROR project the focus has been on the development of the product, since e.g. its purity when produced at large scale provides the foundation for both the toxicology studies and ultimately for a commercially viable production. The technological advances in the synthesis and purification of the ROR inhibitor KAN0439834 are therefore important for the entire development of the project. The recently reported findings that ROR1 is present as a target for drugs in an intractable condition called Richter’s syndrome also strengthens the project's ability to position itself on the market as a strong complement to the new drugs for leukemia and lymphoma.

In the autumn, we have also seen significant progress in the HDAC6 project, partly in the form of a successful crystallization of "Target 2" which gives us access to a molecular design drawing that facilitates the final steps in the optimization of our unique dual action (HDAC6 / Target 2) substances before the selection of a candidate drug. That we also have been able to show that Kancera’s HDAC6 inhibitors have the capacity to reduce the immunosuppressive protein PD-L1 in cancer cells confirm the published findings which support HDAC6 as a new promising immuno-oncology target for drug development.

In September, we were informed that the EU, through its research initiative Horizon2020, has chosen to give a total of about four million Euro (of which Kancera receives more than 10%, about 500,000 Euro) in grants to a leading international team of researchers that will recruit Ph.D. students in order to evaluate new approaches to combat cancer, especially with regard to how drugs can act to stop the DNA repair in cancer cells. Kancera is awarded two Ph.D. students and a grant to cover research costs, allowing us to work with cutting-edge talent in oncology to identify new project opportunities.

Thomas Olin
CEO Kancera AB
November 2016

Thomas Olin, CEO

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