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GTHX - Bull Thesis

Updated: Mar 31, 2022

BULL THESIS

  • GTHX overall corporate and summary

    • Commercial-stage cancer biopharma company focused on the development and commercialization of COSELA™ (trilaciclib).

      • Pipeline in a compound

    • Attractive Enterprise Value of ~$300M (3/10/22) for commercial company with promising new commercial agent with a lot of upside in current approved indication (SCLC) and especially with other possible future indications

      • Estimated market value for ES-SCLC ~$700M.

      • COSELA currently only penetrates 3% of the SCLC market while market data suggests that most physicians intend to prescribe COSELA.

      • Company OK with 2022 revenue consensus of $46M/yr (over 300% increase over $10M in 2021)

      • Currently deploying GTHX’s own sales team for better access and focus on largest potential prescribing accounts

        • Initial unsuccessful commercialization by large pharma partner was due to poor access of sales reps to key accounts.

        • G1 sales reps are apparently doing well in early 7 territories

    • Cash Runway expected to 2024

      • $221M in cash/equiv (12/31/21).

      • Includes $75M drawn from $150M debt facility. $25M available Source.

    • Trilaciclib approval in China for SCLC expected by partner Simcere later in 2022.

    • Potential for $475 million in milestone payments (as of 9/30/21) plus royalties

    • COSELA appears to save the healthcare system money by reducing myelosuppressive events, which is reflected in good insurance coverage


  • COSELA™ Trilaciclib (G1T28) (CDK4/6 inhibitor) SCLC (Small Cell Lung Cancer)

    • Approved 2/2/21

    • ~$21 -> ~$30 increase in stock price after approval.

    • Currently ~20K Eligible ES-SCLC Patients

    • Q3 2021 product sales $3.6M (60% growth over Q2 2021)

    • Added to NCCN Guidelines in 2021.

    • GTHX's own COSELA-focused sales team fully deployed February 2022.

    • Only product offering proactive multilineage myeloprotection to decrease the incidence of chemotherapy-induced myelosuppression in ES-SCLC.

    • Trilaciclib approval in China expected by partner Simcere, royalties and milestones expected.


  • Trilaciclib (Cosela) (CDK4/6 inhibitor) CRC (Colorectal Cancer) and Breast Cancer

    • CRC registrational trial now reading out in early Q1 2023

    • Myeloprotection primary endpoint for FOLFOXIRI chemo hits on strength of Cosela

    • Strong support from preclin work

    • PRESERVE 2, pivotal phase 3 trial in TNBC initiated April 2021.

      • Topline data expected H2 2023

      • Improvement in Overall survival in 2 of 3 cohorts. (source)

      • Compared to GC alone (Group 1),

      • OS was improved in both trilaciclib arms (Groups 2 and 3) (Group 2: HR=0.31, p=0.0016; Group 3: HR=0.40, p=0.0004). Median OS was 12.6 months in Group 1, not reached for Group 2, and 17.8 months in Group 3. The median OS for Groups 2 and 3 combined was 19.8 months (HR=0.37, p<0.0001). The median OS for control GC alone (Group 1, 12.6 months)

      • Strong evidence for PRESERVE 2 readout in 2023.


  • Trilaciclib (Cosela) (CDK4/6 inhibitor) Bladder Cancer

    • Building on strong rationale for trilaciclib + chemo + checkpoint inhibitor;

    • Data to date suggest potential for synergistic effect in known immunogenic tumor. (Source)

    • PRESERVE 3 , Phase 2 initiated June 2021. Initial data expected H2 2022.

    • Market; 20k patients currently receiving Chemotherapy for bladder cancer.


  • Trilaciclib (Cosela) (CDK4/6 inhibitor) combination with the antibody-drug conjugate (adc), trodelvy®. TNBC.

    • Phase 2 initiated November 2021, data expected H2 2022.


  • Rintodestrant

    • Monotherapy Phase 1b data showed rintodestrant to be a strong ER target with anti-tumor activity

    • Currently evaluating partnering options for continued development.


JM/MV 3/10/22 (Updated MV 3/13/22)


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