The phase II study evaluated 90 lesions - the overall reduction of tumour size in all subjects was 86%, with 51% being completely removed. This suggests using LTX-315 as a first-line treatment, but also as adjuvant treatment to shrink a lesion before surgery. The safety profile was excellent. Assuming this can be confirmed in a larger phase III study, the market potential could be in the order of USD1bn. However, Verrica has limited funding (only lasting until Q1 2025), which is why we have not increased our base case of Lytix further.

ATLAS-IT-05 in metastatic melanoma continues with five patients still receiving treatment, showing prolonged disease stabilisation. The DCR rate is now 40% and the ORR 10%. Lytix will transition from developing LTX-315 to earlier neoadjuvant melanoma (NeoLIPA). The results from the Verrica study support this. The phase I/IIa NeoLIPA study will start soon (in Q3) at Oslo University Hospital, which funds the trial. The main endpoint is pathological complete response. The SWOG 1801 study reported a 21% rate in this setting. The CEO suggested 40% would be a strong result, which we also think. We believe the positive results in basal cell carcinoma bode well for melanoma, which shares some features such as a large mutational burden.

We restate our base case of NOK16 since Verrica's phase II readout earlier in August.