Faron Pharmaceuticals - Innovative medical solutions (Part 2)

Pharmacologic progress in higher-risk MDS: an uphill battle

Another article on a current topic: why it’s necessary to pause and do some “Tänka På” (thinking) before phase 3, here discussing phase 3 failures. Largely behind a paywall. (Comments in parentheses)

Pharmacologic progress in higher-risk MDS: an uphill battle: Expert Opinion on Pharmacotherapy: Vol 27 , No 3 - Get Access

Written by Alain Mina (Assistant Professor of Medicine (Medical Oncology & Hematology)) and Amer Zeidan from Yale.

It’s reiterated that azacitidine-like drugs have been a cornerstone of treatment for 20 years despite their modest efficacy. The exception is a very small group with IDH-mutation specific drugs. Practically, the only curative treatment is a bone marrow transplant.

They emphasize the importance of subclassifications in addition to the former high-risk/low-risk concepts. An NGS panel performed on a bone marrow sample provides a list of mutations and their severity (TP53, IDH, etc.), yielding prognostic classes that should be examined individually and used for risk stratification and prognosis with IPSS-M.

The authors highlight failed studies targeting, for example, TP53 and CAR-T.

New targets include:

Nuclear export (the drug inhibits the function of the XPO1 protein; Selinexor has been studied in r/r MDS, among others. In 23 evaluable patients, ORR was 26%, median OS was 8.7 months.

Selaintasi tarkistetaan – reCAPTCHA )

BCL inhibitors (successors to venetoclax; Juho mentioned a Chinese competitor as a competitive factor.)

Inflammation management (a large basket, including CD47, PD-1, cytokines, and of course, Bex).

The article emphasizes harmonizing patient inclusion criteria, evaluating responses using the IWG2023 criteria, which focuses more on patient well-being (this could mean, for example, a reduction in transfusion needs without complete CR), harmonizing diagnostic systems (WHO/ICC), and standardizing response reporting (again, referring to the IWG version, with some studies using OS+EFS and others CR+ORR) so that trials can be compared.

They summarize: “An expanding biological knowledge base and the development of better therapies will hopefully pave the way for future therapeutic breakthroughs.”

(We are currently in the midst of a trial breakthrough for MDS, unfortunately and fortunately, both before and after, although most of these development targets have already been incorporated into Faron’s plans, likely with Zeidan’s assistance).

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CLEVER-1 BLOCKADE AS A POTENTIAL
IMMUNOMODULATORY TREATMENT FOR BRAIN
TUMORS

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Both the researchers (Turku & Tre Yo) and the publisher (Journal for ImmunoTherapy of Cancer (JITC)) are highly reputable. I would just ask whether the (upcoming) solid tumor trial covers that, or if there would be room for a separate investigator-initiated study?
Edit: Or is TAYS already doing it?

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I wonder if this was already mentioned somewhere, but according to this, the number of phase 2B “hospitals” would be 30, lead researcher Zeidan:

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Blood Cancer Developer Terns Acquired for $5.7 Billion

“Merck has struck a $5.7bn deal to buy Terns Pharmaceuticals, a US biotech developing treatments for a rare form of blood and bone cancer.”

See FT 25.3.
The same deal was covered in an industry journal, from which ChatGPT made a summary in Finnish.

Terns Pharmaceuticals rapidly rose to prominence after publishing strong research data at a blood cancer conference, making it an acquisition target. Merck & Co. is acquiring the company for $6.7 billion, but the purchase price includes only about a 6% premium, which is unusually low.

Terns has developed a drug called TERN-701, which targets chronic myeloid leukemia (CML). It operates in a novel way (allosterically), which could make it more effective and less prone to resistance than current medications. Preliminary results are promising, especially in patients who have not responded to other treatments.

The CML market is dominated by large companies such as Novartis, Bristol Myers Squibb, and Pfizer, so Merck is a surprising buyer as it does not have a significant foothold in this area.

Merck plans to advance the drug’s development and initiate late-stage studies for both first-line and later-stage treatment. The company’s interest is almost entirely based on the TERN-701 drug.

Although the purchase price seems modest compared to the drug’s potential, the market does not expect competing offers. The publication is www.oncologypipeline.com

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Earlier in the thread, there was talk about glioma, a brain tumor often lacking cures. This study includes several different brain tumors, one brain metastasis, and meningioma, which is a benign tumor.
And medulloblastoma, the most common malignant brain tumor in children.

Maija’s review of Bex’s treatment possibilities https://www.tandfonline.com/doi/10.1080/1750743X.2026.2617035?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub%20%200pubmed#d1e818 examined Clever concentration in various cancers and the absence of inflammatory cells, indicating a cold immune environment. One of the glioomas studied was found to be a suitable target for Bex.

This appears to be a conference abstract in the esteemed publication Journal for ImmunoTherapy of Cancer.

Apparently from here: https://www.itoc-conference.eu/

Patient samples were studied, and results supporting previous observations were obtained again:

“These responders showed low IFN signaling at baseline, while bexmarilimab induced proinflammatory immune responses. This suggested enhanced antigen presentation, stimulation of IFN-gamma, IFN-alpha, and TNF-alpha signaling, and suppression of M2-macrophage-typical features.”

In this work, the blood-brain barrier (BBB) was “bypassed”. Now we should consider how Bex would enter the brain. Is it a cancer-weakened blood-brain barrier? That’s possible in aggressive tumors. Artificial opening, radiation therapy? On the other hand, pembro, which is a similar antibody to Bex, shows some effect on melanoma brain metastases https://pubmed.ncbi.nlm.nih.gov/30407895/?utm_source, but this might involve activated T-cells that can enter the brain. This would require a primary tumor that has metastasized.

If these brain tumor endeavors continue, even more effort should be put into developing a blood-brain barrier-penetrating anti-Clever small molecule.

This is a very early stage; due to the small number of patients per diagnosis, sub-analyses cannot be performed. It adds more rows to the “dreams” Excel sheet and strengthens the case that it doesn’t matter what the cancer is; it seems to work preliminarily in various cancers, regardless of their name, as long as Clever-1 is in the environment and immunity is cold. That has been the assumption for the past few years. Hats off again, even if my hair is thinning here.

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Dissertations still flying out:

Clever-1 inhibition in human cancer: consequences and control of bexmarilimab-induced macrophage activation

Doesn’t look too bad, at least in a layman’s eyes. Big money will decide sometime in the future what it’s worth!
Edit: Translation of the summary:
Altogether, these results pave the way for the clinical development of bexmarilimab treatment by determining preliminary efficacy, immune correlates of bexmarilimab response, and potential markers for patients likely to respond to treatment. In the future, controlled clinical trials can formally measure the efficacy of treatment, validate the best patient selection methods, and investigate presumed treatment combinations to improve effectiveness. Further studies focusing on non-immune cell types of the TME, especially cancer and endothelial cells, will further deepen the understanding of the effects of bexmarilimab treatment in tumors.

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Stabilin‑1: An immunoregulatory scavenger receptor in inflammation and tissue homeostasis (Review)

A new comprehensive review of Stabilin-1 (Clever-1), which is not limited to cancer but addresses the target more broadly as a regulator of the immune system. New potential drug targets and treatment methods for many inflammation-related diseases.
It supports the idea that this is not a single mechanism or indication, but a broader immune regulation node → approaching platform level… and perhaps value.

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Sorry for the spam, but these Clever-1 papers are popping up like mushrooms after rain. I no longer know what has been covered and what hasn’t.

This gastric cancer paper shows that immunotherapy resistance develops in two stages: tumors prevent T-cell entry (CEACAM), and during treatment, macrophages maintain an inflammatory loop that shuts down T-cells.
Clever-1 is part of this macrophage-mediated brake, and its inhibition (Bex) targets the very core of this resistance.

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Above, a paper was discussed that contained references to the platform level. Now, Faron is indeed seeking a patent for recombinant fragments of Clever-1, which can be used as biomarkers in research or perhaps even as new drug candidates.
Would it be suitable for inflammatory diseases or fibrosis, for example? Bex inhibits, but perhaps Clever-1 could be modulated in different directions.

At least now, IP is being sought that expands beyond Bex to cover some utilization of the Clever-1 mechanism.

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Above Patent Application Abstract and its translation:
A recombinant Clever-1 fragment and a method for producing a recombinant Clever-1 fragment, which fragment mimicking a secreted form of Clever-1 (sClever-1) enriched in plasma of cancer patients, and has observed to have T cell-binding activity and is capable of binding to insulin-like growth factor 2 receptor (IGF2R) By its mechanism of action, a recombinant Clever-1 fragment of the present invention is suitable for use in a treatment of inflammation and/or autoimmune diseases.

A recombinant Clever-1 fragment and a method for producing a recombinant Clever-1 fragment, which fragment mimics a secreted form of Clever-1 (sClever-1) enriched in the plasma of cancer patients, and has been observed to have T-cell binding activity and is capable of binding to the insulin-like growth factor 2 receptor (IGF2R). Due to its mechanism of action, the recombinant Clever-1 fragment of the invention is suitable for use in the treatment of inflammation and/or autoimmune diseases.

Edit: Based on Maija’s group’s Theranostics article last June.
Great work and an achievement!

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Work is apparently being done diligently at Faron and in the chain.

Faron had previously filed a patent application for the use of soluble Clever or part thereof for the management of autoimmune diseases or other inflammatory conditions US20220227858A1 - Controlling of immune activation by soluble clever-1 - Google Patents, where it states “abandoned”. It spoke of the binding site RACK, which in subsequent studies changed to IGF2R. Now, a WIPO patent (i.e., a worldwide patent) is being sought. First, it will be investigated whether a similar invention has been made, and if not, Faron can use the statement for actual patent applications in different countries without having to start from scratch in each country; the invention is now protected.

Now, a more precisely defined part of the Clever-1 molecule is being sought, the production of which is also described https://patentscope.wipo.int/search/en/WO2026057922. Thus, it is not worthwhile to produce a whole large Clever, as its smaller T-cell-affecting part has been identified. Recombination is produced in cell culture (e.g., in this case, with Chinese hamster cells). The mechanism is precisely shown: it binds to the IGF2R receptor on T-cells via mannose-6-phosphate → disrupts the TCR signal → weakens the Th1 response, promotes FoxP3+ suppressive CD8+ T-cells. The application remains the management of inflammatory conditions, including autoimmune diseases.

This is one step towards drug development. The effect is thus the opposite of Bex. Clinical application is still a long way off, but the value of the Clever-1/Bex patent family is constantly increasing.

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AIM

30 March 2026

NOTICE

30/03/2026 7:30am

TEMPORARY SUSPENSION OF TRADING ON AIM

FARON PHARMACEUTICALS OY

At the request of the Company, trading on AIM for the under-mentioned securities was temporarily suspended from 30/03/2026 7:30am, pending an announcement.

SUBSCRIPTION RIGHTS, NIL PAID (DI)

(BS84X55) (FI4000602313)

If you have any queries relating to the above, please contact the Company’s nominated adviser on [+44 (0) 207 213 0880](tel:+44 0 207 213 0880).

Seems unusual this is just AIM and the “suspension pending an announcement of the subscription rights”.

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I wonder why the trading of warrants has needed to be (and could be) suspended on AIM, when they weren’t supposed to be traded today anyway?

image

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Over the weekend, the forum saw a cautionary tale in another junior development company about what can happen to investors in these firms. Extremely promising Phase II results and a huge need for the product, so just finish the last phase and money will flow in. After a long wait, a bomb drops from the final tests. It doesn’t work and development should no longer continue:

And the course reaction was accordingly:

These small drug development companies are harsh targets for investors, as the final truth about functionality is revealed only later, and no matter how good it looks and how much effort is put into scraping together funding, the rug can always be pulled from under the company’s feet. Of course, one hopes for similar return potential for such a huge risk, but one should not stuff too large a portion of their portfolio into long shots like Faron.

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In London, different over the last few days than on the Helsinki Stock Exchange

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Didn’t the same thing happen to Faron with Traumakine, the F3 failure came out of nowhere?

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Yeah, that’s how it went with Traumakine. I recall Markku Jalkanen mentioning in a media interview back then that they already had champagne ready in the company fridge, but it remained unopened for the time being. Well, Bex is a different story. Since we’re invested in this, we have to have enough optimism to believe that after all the financial and communication fiascos, it will eventually make it to the market. Although, of course, there’s nowhere near 100% certainty.

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