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- Cleo Diagnostics (COV) has begun trading on the ASX today following a $12 million IPO
- The company has registered a US patent for its tech to look for one protein in blood samples to identify ovarian cancer
- The protein in question often goes haywire and mistakenly helps tumours grow despite being part of the immune system
- The protein is common in blood cancers but is lesser understood in solid tumour contexts
- Shares last traded at 20 cents
Amid an IPO drought in recent times, early-stage ovarian cancer researcher Cleo Diagnostics is making its ASX debut today following an initial public offering (IPO) where it raised $12 million.
Listed under the ticker code “COV,” the company secured support through the issuance of 60 million shares at 20 cents each.
Upon listing, Cleo will obtain a market capitalisation of $25.7 million and will utilise the raised funds for the development of a “simple and accurate” blood test product for ovarian cancer detection.
On the same day as its ASX trading debut, the company announced the receipt of a US patent for a key technology related to ovarian cancer diagnosis.
Cleo has secured an exclusive license to develop its own biomarker technology, which may aid in diagnosing ovarian cancer patients.
A biomarker is essentially a protein or molecule found in the blood that is typically absent in individuals without target tumours. In this case, Cleo is focusing on C-X-C motif chemokine ligand 10 binding proteins.
Chemokines are a class of naturally occurring proteins in the human body that can inadvertently stimulate tumorous and cancerous growth when cancer develops. Consequently, abnormal values of chemokines in the blood, particularly chemokine CXCL10, may assist Cleo in developing a next-generation ovarian cancer diagnostic test in a non-invasive manner.
Scientific research has already indicated a link between CXCL10 and cancer, with a study from 2011 suggesting that the protein could serve as a diagnostic biomarker. CXCL10 is believed to attract cells into the tumour, aiding in its growth. While they are better understood when detected in patients with blood cancers, research is expanding into the role CXCL10 may play in solid tumours.
The company believes its scientific understanding will also enable it to predict the likelihood of cancer recurrence in individuals following treatment.
While Cleo now holds a US patent, it is also progressing with patents in several major economies, including Australia, China, India, Europe, and Japan.
Location, location, location
Cleo noted that the US represents the world’s largest diagnostics market, which continues to grow.
“Securing a U.S. Patent not only expands the company’s IP portfolio, but it also marks an important milestone which effectively activates our commercialisation plans to pursue market entry in the largest diagnostics market in the world,” Cleo CEO Richard Allman said.
“CLEO’s simple blood test for accurate and early detection of ovarian cancer has the potential to transform the standard of care for women globally.”
COV shares last traded at 20 cents.
