The Offering
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Currently led by Natalie Holles, who has been serving as the chief executive officer for more than a year, the company was founded by venture capital firm Atlas Venture in 2019. For the Cambridge-based firm, the main priority is the further development of intellectual property licensed from Novartis AG (NYSE: NVS), which is part of its investor syndicate.
Net proceeds from the offering will mainly be used for the development of THB001 for various indications — Third Harmonic’s lead candidate for the treatment of dermatologic and respiratory conditions — and expansion of the remainder of its pipeline, besides general research and development activities.
Pipeline
To a large extent, the long-term prospects of the business would be influenced by results from early-stage trials on THB001. Currently, multiple studies on the formulation are progressing – preclinical and phase-1 – for conditions like chronic inducible urticaria, chronic spontaneous urticaria, and asthma. Initial results from the phase-1b trial for chronic inducible urticaria are expected by the second half of 2023.
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After successful development, these treatments are expected to find a large market and expand steadily over the years. Meanwhile, the company did not generate revenues in the six months ended June 2022, like most clinical-stage biopharma firms. It incurred a net loss of $15.46 million, mainly reflecting costs related to research and development.
Road Ahead
Going forward, competition from industry leaders like Johnson & Johnson (NYSE: JNJ) and relatively smaller players like Teva Pharmaceutical Industries Ltd (NYSE: TEVA) would be a major challenge facing the company. On the positive side, the global market for therapies targeting various types of urticaria is estimated to grow at a compound annual rate of about 10% through 2026. That should create enough space for all players to grow.