Announcement • Jul 13
Faron Pharmaceuticals Oy Provides Update on Investigator-Initiated Trial Portfolio for Bexmarilimab Faron Pharmaceuticals Oy provided an update on its portfolio of Investigator-Initiated Trials (IITs) evaluating bexmarilimab, its wholly owned anti-Clever-1 immunotherapy, in multiple oncology indications. The update covers five IITs in solid tumors and hematological malignancies, reflecting both advances and adjustments across the program. The investigators of the BLAZE IIT, led by The Institute of Cancer Research (ICR) and conducted at The Royal Marsden NHS Foundation Trust in London, UK, as well as other UK hospitals, have updated the trial’s anti-PD-1 combination drug to nivolumab (Opdivo®), a fully approved, globally used standard-of-care anti-PD-1 inhibitor. The trial has received the necessary regulatory and ethical approvals and is advancing towards first patient enrolment. The BLAZE trial is a Phase 1/2 evaluating bexmarilimab in combination with nivolumab in patients with metastatic non-small cell lung cancer (NSCLC) or melanoma who have developed resistance to prior anti-PD-1-based immunotherapy. The trial investigates a sequential approach: patients first receive a run-in dose of bexmarilimab to reprogram the immunosuppressive tumor microenvironment, followed by the combination of bexmarilimab and nivolumab, with the aim of resensitizing tumors to checkpoint inhibition. Using nivolumab as the combination backbone is scientifically meaningful, because its efficacy is well characterized. Therefore, clinical activity observed in the combination treatment can be better understood. The BEXAR trial has received the necessary regulatory and ethical approvals and is advancing towards first patient recruitment. BEXAR is a randomized Phase 1b/2 IIT sponsored by MEDSIR and conducted at six Spanish hospitals and led by Dr. Cesar Serrano at the University Hospital Vall d'Hebron in Barcelona, Spain. The trial evaluates bexmarilimab in combination with standard-of-care doxorubicin in patients with first-line metastatic soft-tissue sarcoma. The expression of bexmarilimab’s target, Clever-1, in soft-tissue sarcomas is among the highest observed across tumor types, providing a strong biological rationale for the use of bexmarilimab in this setting. Additionally, bexmarilimab's observed effects on hematopoiesis in the bone marrow may help offset the myelosuppressive effects of doxorubicin. The trial design includes exploratory endpoints to further evaluate this hypothesis in the sarcoma setting. The FINPROVE trial is an ongoing national, investigator-initiated precision medicine study sponsored by Helsinki University Hospital, designed to evaluate targeted treatment approaches across multiple tumor types. Following a regulatory review by the Finnish Medicines Agency (Fimea), the proposed bexmarilimab cohort was considered incompatible with the FINPROVE platform trial, which focuses primarily on marketed therapies with established and approved patient selection strategies. This outcome does not impact Faron’s broader development program for bexmarilimab. Two further IITs continue to advance through active protocol development and regulatory submission preparations. The BEAM-X trial, led by the Nordic AML Group, will evaluate bexmarilimab in patients with measurable residual disease-positive acute myeloid leukemia (AML) following allogeneic stem cell transplantation. In parallel, the IIT sponsored by City of Hope National Medical Center in the United States, is planned to evaluate bexmarilimab and orally administered decitabine-cedazuridine (Inqovi®) in relapsed or refractory myelodysplastic syndromes (r/r MDS). Further updates on both IITs will be provided in due course. Bexmarilimab is Faron’s wholly owned, investigational immunotherapy designed to overcome resistance to existing treatments and optimize clinical outcomes, by targeting myeloid cell function and igniting the immune system. Bexmarilimab binds to Clever-1, an immunosuppressive receptor found on macrophages leading to tumor growth and metastases (i.e. helps cancer evade the immune system). By targeting the Clever-1 receptor on macrophages, bexmarilimab alters the tumor microenvironment, reprogramming macrophages from an immunosuppressive (M2) state to an immunostimulatory (M1) one, upregulating interferon production and priming the immune system to attack tumors and sensitizing cancer cells to standard of care. New Risk • Apr 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 79% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Negative equity (-€19m). Earnings are forecast to decline by an average of 8.1% per year for the foreseeable future. Shareholders have been substantially diluted in the past year (79% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Currently unprofitable and not forecast to become profitable over next 3 years (€13m net loss in 3 years). Recent Insider Transactions • Apr 07
Independent Non-Executive Chairman recently bought UK£174k worth of stock On the 30th of March, Tuomo Patsi bought around 400k shares on-market at roughly UK£0.43 per share. This transaction increased Tuomo's direct individual holding by 8x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Tuomo has been a buyer over the last 12 months, purchasing a net total of UK£219k worth in shares. 
