Alpha Tau Medical Ltd (DRTS)

Alpha Tau Medical Ltd.

Company Profile:

Detailed history and background: Alpha Tau Medical Ltd. (ATAU) is a clinical-stage biopharmaceutical company founded in 2007. The company is headquartered in Netanya, Israel, with additional offices in the US and Europe. ATAU focuses on developing and commercializing novel cancer treatment options using alpha-radiation therapy. This therapy utilizes isotopes directly targeted to tumor cells, delivering a highly effective, localized dose of radiation with minimal impact on surrounding healthy tissue.

Core business areas: ATAU has two primary focus areas:

• Development of Alpha-Emitting Pharmaceuticals (ATOs): ATOs are radioactive isotopes designed to deliver alpha particles directly to tumors. ATAU has developed several ATO platforms with varying isotopes and targeting molecules for various cancer types.
• Development of Targeted Alpha Therapies (TATs): TATs combine the ATOs with delivery systems like antibodies, peptides, or nanoparticles for specific tumor targeting. ATAU's pipeline currently includes multiple TATs in different stages of clinical development for various cancer indications.

Leadership and corporate structure: Alpha Tau Medical is led by a team of experienced executives with a strong track record in the pharmaceutical industry. The company's CEO and Chairman of the Board is Yigal Avrahami, PhD. The executive team also includes Chief Operating Officer Ronny Brenner, PhD, and Chief Medical Officer Uzi Sofer, MD. The board of directors comprises prominent figures with expertise in finance, medicine, and biotechnology.

Top Products and Market Share:

Current products: ATAU has not yet commercialized any products. The company's lead product, Iomab-B, is a B-cell directed TAT currently in Phase III clinical trials for treating non-Hodgkin lymphoma (NHL). Other promising product candidates include AlphaTau 32P-PSMA (for prostate cancer), AT-211-Mesothelin (for mesothelioma and ovarian cancer), and AlphaTau 32P-PIGF (for breast cancer).

Market share: As ATAU's products are still in development, they do not currently hold any market share. However, the global alpha-emitting radiopharmaceuticals market is expected to grow from USD 405 million in 2021 to USD 1,235 million by 2028. The global targeted alpha therapy market is estimated to grow from USD 332.2 million in 2022 to USD 2.4 billion by 2028.

Product performance and market reception:

• Iomab-B: Phase II trials for Iomab-B have demonstrated promising complete and partial remission rates in NHL patients, with minimal adverse effects.
• AlphaTau 32P-PSMA: Early data suggests potential efficacy and favorable safety profile in advanced prostate cancer.
• AT-211-Mesothelin: Preclinical data shows significant tumor growth inhibition and improved survival in mesothelioma models.
• AlphaTau 32P-PIGF: Initial studies indicate encouraging anti-tumor activity with a manageable toxicity profile.

Overall, the positive data and novel mechanism of action of ATAU's product candidates have garnered significant interest in the medical community, positioning them favorably in the competitive landscape.

Total Addressable Market (TAM):

• The global market for alpha-emitting radiopharmaceuticals is expected to reach USD 1.235 billion by 2028.
• The global market for targeted alpha therapy is estimated to grow to USD 2.4 billion by 2028.
• The US market for alpha-emitting radiopharmaceuticals and targeted alpha therapy represents a substantial portion of these global markets, potentially reaching billions of dollars in the next few years.

Financial Performance:

• Recent financial statements: As a clinical-stage company, ATAU currently has no significant revenue. The majority of the company's expenses are related to research and development, clinical trials, and general and administrative costs. As of June 30, 2023, ATAU reported a net loss of USD 43.4 million for the second quarter of 2023.
• Financial performance comparison: Compared to the previous year, ATAU's operating expenses have increased due to ongoing clinical trial activities. The company is actively seeking additional funding to support its growing development pipeline.
• Cash flow and balance sheet health: As of June 30, 2023, ATAU had cash and cash equivalents of USD 63.2 million. However, the company has accumulated significant losses and its future cash flow will depend on successful product commercialization.

Dividends and Shareholder Returns:

• Dividend History: ATAU is a pre-revenue company and does not distribute dividends.
• Shareholder Returns: ATAU's stock price has experienced significant volatility in recent years. However, long-term investors have witnessed significant gains.

Growth Trajectory:

• Historical growth: AT