(Graft Polymer (UK) PLC (LSE:GPL) CEO Anthony Tennyson talked with Proactive's Stephen Gunnion about the company’s plans to acquire Canadian biotech Awakn Life Sciences. Tennyson explained the rationale behind this strategic move, highlighting Awakn's robust clinical-stage pipeline that offers significant opportunities in addressing alcohol use disorder (AUD).
The acquisition includes two core programs: AWKN001, targeting severe AUD in the UK, and AWKN002, targeting moderate to severe AUD in the US. Tennyson emphasised the de-risked nature of these assets, particularly the phase three AWKN001 trial, which is two-thirds funded by the UK Department of Health. Notably, results from earlier trials demonstrated abstinence rates improving from 2% to 86% post-treatment.
Proactive: Anthony, very good to speak with you. Could you start by explaining the rationale for acquiring Awakn Life Sciences?
Anthony Tennyson: I’m really pleased about the news that we released yesterday. Graft Polymer has entered into a binding letter of intent or term sheet to acquire the Canadian biotech Awakn Life Sciences. The reason I’m so excited about that is because of Awakn’s pipeline, their data, and their people—their talent and team.
It’s a really interesting company. They have a robust clinical-stage pipeline, which provides a de-risked opportunity for us. They have two mid-to-late clinical-stage programs: AWKN001, targeting severe alcohol use disorder for the UK market, and AWKN002, targeting moderate to severe alcohol use disorder in the US.
That pipeline provides us with access to these mid-to-late clinical-stage programs, which significantly de-risk things for us. From an investor perspective, it provides Graft with near- to medium-term revenue opportunities at what we believe is a fair price for our investors.
The second thing we really like about Awakn is its data. The phase two data that Awakn acquired the IP for from the University of Exeter was very encouraging for severe alcohol use disorder. People coming into that trial were sober only 2% of the time—about seven days a year. After going through the active arm of the trial, they achieved a level of abstinence of 86% in the six months post-treatment.
To move from 2% to 86% abstinence is quite material, particularly for an indication with a large addressable market and a relatively poor current standard of care. This presents a significant opportunity to address an unmet medical need.
We’re very pleased that the trial is now moving forward into phase three.
The third thing that attracted us to Awakn is the team. Professor David Nutt, who Graft Polymer already has a relationship with, is the chief research officer there. Professor Celia Morgan is a scientific advisor and one of the UK’s leaders in alcohol use disorder treatment. Professor Barbara Mason is also a significant individual in the field of alcohol use disorder treatment in the US. She runs the Scripps Institute, which is one of the largest alcohol use disorder research institutes in the US.
Proactive: Can you tell us a little bit more about Awakn’s lead program?
Anthony Tennyson: Indeed, I can. AWKN001 targets severe alcohol use disorder. As I mentioned, phase two is complete. Awakn acquired the IP from the University of Exeter, and the trial is now in phase three. It’s being executed in partnership between Awakn, the UK Department of Health, and the University of Exeter.
The trial is funded two-thirds by the UK Department of Health, through the National Institute for Health and Care Research and the Medical (TASE:PMCN) Research Council. It’s a 280-person phase-three trial. Because of Awakn’s relationship with the Department of Health, the trial costs just £2.25 million, with Awakn’s cost capped at £800,000. That significantly de-risks the opportunity for us.
The trial started in July this year and is forecast to conclude in 2026, with data analysis expected that year. Ideally, we aim to file for a marketing authorisation application in the UK in 2027, pending successful trial results. All going well, we could have a product on the market for severe alcohol use disorder in the UK by late 2027 or early 2028.
Proactive: Anthony, I see on the 3rd of December you announced a planned rebrand of Graft Polymer to Solvonis Therapeutics PLC. What was the rationale for that? How does the planned acquisition of Awakn support this?
Anthony Tennyson: That’s a great question. This is all part of the journey we’re on at Graft Polymer (UK) PLC (LSE:GPL). Our aim is to build a leading, UK-focused neuropsychiatry company. Solvonis speaks to where we want to go. We’re focused on helping to address addiction and mental health issues, solving problems and providing hope for individuals, families, and communities where current treatments are ineffective.
The acquisition of Awakn clearly supports this journey. Awakn is a leading company in developing therapeutics for addiction treatment. It’s very complementary to what we want to achieve with Solvonis Therapeutics—positioning us as a leader in neuropsychiatry, particularly in addiction and mental health.
Proactive: Anthony, can you outline the benefits for both sets of shareholders through this acquisition?
Anthony Tennyson: I’ll focus on the benefits to Graft shareholders if that’s okay. As I mentioned earlier, this acquisition provides Graft with access to a robust, de-risked pipeline. Awakn’s programs include AWKN001 in phase three, AWKN002 in phase two planning, and some high-potential preclinical programs.
The acquisition complements Graft’s existing team by adding the talent within Awakn. Importantly, it gives us full ownership of the preclinical program we co-invested in with Awakn.
From my perspective, there are very few companies in the addiction and mental health category that have clinical-stage assets available at the price we are planning to secure Awakn for. Overall, I believe this is positive for Graft shareholders as part of our journey to rebrand to Solvonis Therapeutics and build a UK-based neuropsychiatry company addressing addiction and mental health.
Proactive: I hope you'll keep us posted on any developments as the acquisition proceeds. Thank you very much for taking the time today.