Percheron Therapeutics (ASX:PER) is positioning itself as a small but strategically focused biotechnology company seeking to carve out a role in the rapidly expanding immuno-oncology market.
In an investor update, the company said its central ambition is to develop a next-generation immune checkpoint inhibitor, HMBD-002, designed to help the body’s immune system recognise and attack cancer more effectively.
Checkpoint inhibitors have transformed oncology over the past decade by blocking signals tumours use to evade immune detection. Yet many patients either fail to respond or relapse after treatment, leaving a substantial unmet clinical need. Percheron’s approach targets VISTA, a newer immune checkpoint that is widely expressed across tumour types and is often linked to poorer outcomes and resistance to existing therapies.
HMBD-002 has been engineered to address some of the limitations that have hindered earlier attempts at this target. Unlike many previous VISTA antibodies, which triggered toxicity through immune cell activation, HMBD-002 uses an IgG4 antibody scaffold intended to block the checkpoint without aggressively destroying immune cells. The company said this design may reduce safety risks while still providing therapeutic benefit, particularly when combined with established treatments such as PD-1 inhibitors.
The program has already completed a Phase 1 clinical trial in patients with advanced cancers, demonstrating a favourable safety profile and signs of clinical activity in heavily pre-treated individuals. Several patients experienced tumour shrinkage or prolonged disease stabilisation, outcomes often considered encouraging, early indicators of targeted or immunotherapies.
Percheron said it plans to move into Phase 2 trials during 2026. The proposed study design is based on the fact that multiple tumour-specific arms can be launched and evaluated independently, allowing the company to focus resources on the most promising indications. Early targets under consideration include triple-negative breast cancer, EGFR-mutant lung cancer, oesophageal cancer, and endometrial cancer, each representing patient populations with significant unmet need and potentially large commercial opportunity.
Immuno-oncology drugs collectively generate tens of billions of dollars annually. Percheron said pending patent expiries of leading therapies may open the door for next-generation agents to further expand the market. Even success in a single cancer indication could yield significant revenue potential, while partnership deals for comparable immunotherapy assets suggest that mid-stage programs can attract major pharmaceutical interest.