Tempest Therapeutics is actively seeking strategic partnerships to advance its promising liver cancer drug amezalpat (TPST-1120) through Phase III clinical trials after facing significant funding challenges in the current biotech investment climate.
The US-based biotech company has already demonstrated positive Phase II data for amezalpat, but CEO Stephen Brady acknowledged the financial hurdles ahead. "The capital markets have been unavailable to support the next stage of development," Brady stated in a recent announcement.
Tempest is now exploring various "strategic alternatives" including potential mergers, acquisitions, partnerships, joint ventures, or licensing arrangements to move forward with the development of what Brady describes as "potentially life-saving therapies for patients in need."
Promising Clinical Results in Liver Cancer
Amezalpat has already received FDA clearance for a pivotal Phase III trial (NCT06680258) where the orally administered drug will be evaluated in combination with Roche's Tecentriq (atezolizumab) and Genentech's Avastin (bevacizumab) for the treatment of unresectable or metastatic hepatocellular carcinoma (HCC), the most common form of primary liver cancer.
The drug has shown significant promise in earlier studies. In a Phase I/II umbrella study (NCT04524871), amezalpat demonstrated a remarkable six-month improvement in median overall survival for patients receiving the combination therapy compared to the control arm of Tecentriq and Avastin alone.
Novel Mechanism of Action
What makes amezalpat particularly noteworthy is its novel mechanism of action as a peroxisome proliferator-activated receptor alpha (PPAR-α) antagonist. PPAR-α is primarily known as a nuclear receptor involved in lipid metabolism pathways, but growing evidence suggests it also plays a role in cancer development.
Currently, there are no FDA-approved PPAR-α antagonists on the market, highlighting the potential first-in-class opportunity for amezalpat. The FDA has recognized this promise by granting the drug both fast track designation and orphan drug designation for HCC treatment.
Market Potential and Existing Partnerships
Despite growing competition in the liver cancer treatment landscape, the market remains lucrative. Tecentriq, one of the drugs that would be combined with amezalpat in the Phase III trial, generated sales of $2.14 billion for Roche in 2024, making it one of the pharmaceutical giant's top-selling products.
Tempest believes amezalpat has blockbuster potential in first-line HCC treatment. The company has already secured a partnership with Roche to supply Tecentriq for the planned Phase III trial through an agreement established in October 2024.
Financial Challenges
The announcement about seeking strategic alternatives came after market close on April 9, following a day when Tempest's Nasdaq-listed shares closed 10.7% higher, partly due to a stock split executed on the same day. However, the company's financial position remains precarious with a market capitalization of just $25.1 million.
Tempest ended the 2024 fiscal year with $30.3 million in cash, down from $39.2 million at the end of 2023. The company's annual loss increased from $29.5 million in 2023 to $41.8 million in 2024, underscoring the urgent need for additional funding or strategic partnerships.
Broader Pipeline Considerations
Beyond amezalpat, Tempest is also seeking similar strategic partnerships for TPST-1495, a dual EP2/4 prostaglandin receptor antagonist in its pipeline. This second asset has received FDA orphan drug designation for the treatment of familial adenomatous polyposis (FAP).
The company's funding challenges reflect a broader trend in the biotech sector, where investment has remained at historically low levels since the 2021 boom. This environment has made it increasingly difficult for smaller biotech companies to advance promising therapies through costly late-stage clinical trials without securing alternative funding methods or strategic partnerships with larger pharmaceutical companies.
As Tempest navigates these challenging waters, the future of amezalpat – a drug with significant potential for liver cancer patients – hangs in the balance, awaiting the right strategic partner to help bring it through the final stages of clinical development.
