Phagelux is highly focused on developing a pipeline around antibacterial products with the goal of becoming a global leader in anti-infectives. Could you elaborate on the reasons behind this focus?

Certainly. Antibiotic resistance is a significant global problem, particularly in countries that heavily focus on agriculture, such as India and China. The malpractices in these regions have worsened human health and led to an urgent need for infection containment solutions. Phagelux was founded with a focus on biological solutions to bacterial issues. Biology offers advantages in drug development, as it is easier to develop narrow-spectrum drugs, relatively safer, and easier to understand in terms of the likelihood of success compared to chemical solutions. The safety profile of biological solutions is also advantageous during the clinical stages of drug development. After accumulating sufficient resources for several antibiotic resistance-focused products, we launched the company.

Why is antibiotic resistance such an important area of disease research?

In comparison to other areas of biopharma research, antibiotic resistance has not received as much attention. However, a WHO report last year highlighted the alarming projection that by 2050, more people will die from infections than from cancer. Despite this revelation, there has been relatively little translation of this information into new research or funding for antibiotic resistance. It is crucial to address antibiotic resistance as an urgent area of disease research to prevent a future health crisis.

Could you share your experience navigating the capital markets, and how do you anticipate the investment climate evolving as Hong Kong considers adapting its listing requirements to favor biotechs?

Currently, most funds in China face challenges when it comes to investing overseas due to government policies. Additionally, China lacks a public market specifically for biotech companies. This presents a challenge for Chinese-based companies seeking local financing but also aiming to list overseas where the current markets are located.

Ultimately, if a program shows promise, investment can be secured. However, there is a global misconception regarding the availability of quality capital. Phagelux values sophisticated investors who understand the biotech industry and its potential.

How is Phagelux’s approach to biological research contributing to the innovation wave in China’s biopharmaceutical industry?

Much of what we are doing with phages is not necessarily innovative, as phages have been used in Eastern Europe for a long time. However, our innovation lies in creating preventative products using phages. Traditionally, phages have been used for treatment, but we have developed sustained-release solutions that allow us to prevent infections in the first place. Given the high cost of treating infections, our products will save healthcare systems a significant amount of money by reducing the number of patients who contract infections. Additionally, our focus has been on topical treatments, which typically have fewer regulatory hurdles. As regulators become more accepting of phage usage, we believe there are even more exciting possibilities. We are currently working with both phages and lysins, which are enzymes produced by phages that break down bacterial walls. For certain types of infections, such as acne, where the consumer plays a greater role, we believe lysins are more marketable.

What factors have made the present an interesting time to invest in China’s biopharmaceutical industry?

China offers a unique environment for investment in biopharmaceuticals. The country boasts an enormous resource of talented scientists, concentrated patient pools, and a growing number of highly capable pharmaceutical industry leaders. Chinese scientists are exceptionally talented and are continuously improving their education, not only in science but also in the business aspects of science. This group of scientists, often educated overseas, possesses the right experiences and understanding of organizational aspects to build successful companies. The government has been heavily supportive of infrastructure that fosters an ecosystem for innovation, not just improvement upon existing ideas but also the introduction of novel concepts. Ultimately, the impact on the lives of people is the best measurement of innovation, and in the short term, the number of highly qualified scientists in China will drive new innovation forward.