Keeping on-track

Cizzle Biotechnology (Cizzle), focused on cancer diagnostics, was spun out of the University of York to exploit the biomarker, variant CIZ1b, for early detection of different forms of lung cancer. There is high medical need for a simple blood test that allows early detection of lung cancer and potentially improve patient outcomes. Since listing, Cizzle has expanded this concept to develop a broader screening test, with the possibility of testing for other cancers and, in addition, developing a companion diagnostic for autoimmune disease. Cizzle continues to make progress on a number of fronts, most of which have come after the reporting period.

• Strategy: Cizzle is a diagnostic company that is progressing a biomarker diagnostic assay, which aims to deliver a simple blood test for lung cancer that can pick up the disease earlier to improve the chances of survival, and to greatly reduce the need for unnecessary follow-up tests and tissue biopsies.
• Interims: Results for 1H’21 were in line with expectations, after taking account of the £65k pre-payment for the MoU with SGSC (see below). Cizzle incurred modest administration costs of -£119k, compared with our forecast of -£200k, including the MoU payment. Net cash at 30 June was almost as forecast, at £1,425k.
• SGSC: Initially, Cizzle signed an MoU with St. George Street Capital (SGSC), a UK-based medical charity, to develop a companion diagnostic for one of its clinical assets, also with the potential to earn royalties. This has evolved into two deals, with the commercial and royalty deal signed, giving potential royalties of up to £5m.
• FairJourney: In July, Cizzle signed a collaboration deal with FairJourney Biologics (FJB) for the development and supply of proprietary monoclonal antibodies and reagents that will be the foundation for protein detection in its ELISA-based test. This was a key step highlighted in its admission document in May.
• Investment summary: Since Cizzle’s listing, its shares have drifted while the market awaits news. Since the period-end, Cizzle has announced two new collaborations, which have the potential to expand the number and timing of income streams. Trading on an EV of just £10.9m, the market seems to be ignoring these deals, which suggests that Cizzle has considerable upside potential when investors become aware of these and as development progress is made.