Overview

ReRx Therapeutics, led by President and CEO Prabha, is developing obesity treatment RERAC001 and has filed patents, with a licensing intent from UC Berkeley.

Prabha outlined the potential FDA approval timeline for their lead molecule by 2032, with value points after phase 1 and 1b studies by 2026.

Phillip emphasized Corenest Capital's interest in medtech investments, confirmed their role as follow-on investors, and highlighted a personal connection to the product's application.

Immediate next steps include a write-up by Phillip and a technical follow-up call with Justin to talk about ReRx Therapeutics' science and funding prospects.

Licensing and Patents

Prabha confirmed that ReRx Therapeutics has an executed letter of intent from UC Berkeley for licensing.

Two patents were filed in 2022 for a method of use patent for the molecule in obesity and for a combination use with a GLP-1 receptor agonist.

Terms and conditions are still to be worked out for the licensing agreement.

Phillip mentioned UC Berkeley encourages using IP developed from research and practitioners usually just have to accept their terms.

Two additional patents have been filed by ReRx early this year:

A patent was filed for the clinical formulation of the molecule.

A composition of matter patent was filed for a second generation molecule called redox 1 after a freedom to operate (FTO) search.

Company Profiles

Prabha briefed that she's President and CEO of ReRx Therapeutics with 30+ years in the industry, starting as a bench chemist at Amgen.

Prabha took 3 drugs from discovery to market; 2 in oncology, 1 in chronic disease, including Zelboraf and Turalio.

ReRx Therapeutics was recognized in first place by a nuclear program and received a $200k investment from Skydeck cohort.

Justin, a PhD candidate at Berkeley, presented the foundational research for the product, and his thesis is part of the data.

Product Overview and Clinical Data

ReRx is focusing on treating obesity by boosting metabolism with small molecule RERAC001, uniquely targeting energy expenditure.

Prabha and Justin's conversation about RERAC001 showed weight loss correlated with decreased fat mass, not lean mass, in preclinical studies of diet-induced obesity in mice.

Preclinical trials showed effective weight loss without reduced food intake and improved glucose tolerance and lipid profiles in mice.

Justin presented data:

RERAC001 led to body weight and fat mass reductions in mice; achieved a greater decrease in body weight when combined with semaglutide.

RERAC001 demonstrated improvements in serum triglyceride levels, contrasting with known ACC inhibitors.

Identified a second target based on RNA Seq screening, suggesting a dual mechanism of action.

Metabolic cage studies confirmed RERAC001 increased energy expenditure in mice, which was also evident in mitochondrial respiration studies in mouse and human liver cells.

The potential of RERAC001 extending beyond pharmaceutical effects, potentially enhancing day-to-day energy and workout recovery, though human trials are needed to evaluate.

Corenest Capital Presentation

Phillip introduced Corenest Capital, a new fund started sourcing deals in November and already closed 4 deals with hopes to have 5 or 6 by the end of the month.

Their investment focus areas include medtech, AI, robotics, big data, fintech, but medtech is of particular interest currently.

Check sizes for pre-seed and seed are $50k to $250k, and for Series A is half a million, with the potential to go higher but never lower.

Phillip elaborated on their structural process of deal sourcing, evaluation, and partner decision-making; medtech is slightly outside their usual scope, but there is interest.

Corenest's main office is in Dubai; operates from SF Bay Area, Vancouver, SF, LA, Barcelona, and Dubai; offers equity plus support.

Phillip revealed personal interest in the product, struggling with weight loss despite regular intense workouts.

Questions and Clarifications

Phillip asked if using RERAC001 in combination could potentially permit lower doses of drugs like semaglutide to reduce side effects.

Phillip asked if the increased energy expenditure by RERAC001 could facilitate enhanced workout capabilities or energy levels.

Concerns about current obesity drugs that suppress appetite; Phillip expressed that long-term dependence is problematic.

Prabha indicated that weight tends to return if current treatments like semaglutide are discontinued.

Therapeutic Approach and Lifestyle Changes

Justin pointed out that despite existing drugs that reduce food intake, there's a problem when you stop taking them – the body craves the lost calories.

He called this "biological vengeance."

He stressed the need for effective treatments that guide people to make lifestyle changes versus artificially changing lifestyle behaviors with the drugs that currently decrease food intake.

Preclinical Studies Outcomes

Justin shared that over 20 mouse model preclinical efficacy studies showed body weight reduction primarily in fat mass loss without affecting food intake.

Justin also noted improvements in metabolic profiles, like reduced triglyceride and cholesterol levels, better glucose control reflected by enhanced insulin sensitivity, and decreased signs of liver injury characterized by less fat and fibrosis.

Potential Drug Combinations and Market Strategies

Phillip asked about marketing combination treatments as a single pill for co-development with large-scale manufacturers.

Prabha confirmed the benefits of combination drugs, mentioning lifecycle management strategies for drugs like Bugave and Zepawn, whose exclusivity will expire.

Justin mentioned their small molecule approach could be cheaper to manufacture than peptide-based treatments like semaglutide — a significant market differentiator.

Clinical Development Plans and FDA Approval Process

Prabha detailed that their lead molecule is in preclinical development, targeting obesity as the initial indication due to a clear clinical path, with potential expansions into metabolic syndrome, type 2 diabetes, and NASH/NAFLD.

She predicted FDA approval by 2032, after completing necessary studies and phase trials.

Justin added value points could be reached with safety evidence at the end of phase 1 and preliminary efficacy in phase 1b studies by late 2026.

Prabha highlighted 2029 as a pivotal year for potentially licensing or selling the drug post-phase 2 studies, with the most value.

Funding and Investment Strategy

Phillip confirmed they are pre-seed, seeking $2M.

More talks to be had regarding term sheets and SAFE is favored.

Prabha mentioned no other VCs are on board but conversations are ongoing, while not having published any research yet.

Phillip emphasized Corenest Capital's policy as a follow-on investor and explained the importance of having another VC or significant angel investor on board.

Company Development and Strategic Advisory

Prabha indicated they have a BD consultant named Scott Woodworth who'll be involved post-Skydeck transition.

Phillip shared his personal connection to obesity treatment, his professional chef background, and his current struggle with weight loss despite a rigorous exercise routine.

They talked about the possibility of compassionate use following successful phase 2 results for those who benefit from the drug.

Prabha mentioned the potential of the second and third generation of drugs targeting multiple indications without pricing issues.

Investment Prospects and Future Engagement

Phillip expressed enthusiasm for the project and its impact but noted the timelines may not align with his personal use.

He confirmed his intent to write up and necessitate a technical follow-up call.

Phillip highlighted Corenest Capital's long-term investment vision, supporting not just this round but future funding rounds as well.

He requested immediate notification when another VC comes on board to facilitate swift investment actions.