Medicus Pharma (NASDAQ:MDCX) plans to concentrate new development spending on an oncology drug licensed from Pfizer while pursuing a proposed deal to separately list its SkinJect business, executives said during the company’s third-quarter 2026 earnings call.
The biotechnology company reported a third-quarter net loss of $15.2 million, compared with $16 million a year earlier. President and Chief Financial Officer Carolyn Bonner said Medicus expects a substantial reduction in operating expenses in coming quarters.
Pfizer-Licensed Cancer Drug Is the Priority
Executive Chairman and CEO Dr. Raza Bokhari said Medicus’ initial focus for PF-08046031, which it calls CD228V, is melanoma that has relapsed or resisted immunotherapy. The antibody-drug conjugate is investigational and has not been approved for commercial sale.
Medicus entered a co-development and license agreement with Pfizer on Sept. 2. Subject to retained rights and other provisions, Medicus holds an exclusive worldwide license to develop, manufacture and commercialize the program, while Pfizer remains involved under the co-development framework, Bokhari said.
Pfizer provided $2 million for development and has the right, but not the obligation, to fund all or part of development beginning with the first pivotal trial. Medicus paid Pfizer $12 million upfront, Bonner said.
Bokhari said the company’s decision to license CD228V was informed by its review of an 88-patient Phase 1 study of an earlier molecule, SGN-CD228A. Detailed results from that study have not been publicly disclosed. CD228V uses Pfizer’s vedotin linker-payload platform and was reconstructed with changes intended to improve the balance between drug exposure, tolerability and anti-tumor activity, he said.
Management believes CD228V has the potential to produce an objective response rate above 30% in melanoma, a benchmark Bokhari said could support a future FDA monotherapy registration strategy if accompanied by durable responses, acceptable safety and satisfaction of regulatory requirements. That potential has not yet been demonstrated in clinical trials of CD228V.
Chief Medical Officer Dr. Faisal Mehmud said Medicus was constructing a development plan but did not provide a timetable for the next clinical or regulatory milestones. He said future studies could explore combinations with immunotherapy and other tumor types.
SkinJect Deal Contemplates Separate Listing
SkinJect entered a nonbinding letter of intent with an undisclosed special-purpose acquisition company, or SPAC, on Nov. 4. The proposed business combination contemplates a $135 million pre-money enterprise valuation and concurrent equity financing at closing.
Under the proposed terms, the SPAC would acquire all of SkinJect in exchange for newly issued shares of the combined company. Medicus is seeking to retain majority economic and voting ownership, Bokhari said. Management anticipates a potential closing in the first half of 2027, but cautioned that definitive agreements, financing and completion are not assured.
The contemplated financing would support the SKNJCT-005 study in Gorlin syndrome and preparation of a potential new drug application. Bokhari estimated the program would cost approximately $3 million over the next two years and said Medicus would continue advancing it while pursuing the transaction.
Financial Position and Teverelix Plans
For the first nine months of 2026, Medicus reported a net loss of $35.9 million, compared with $27.3 million a year earlier. Operating expenses rose to $34.5 million from $26.6 million, including a $10 million acquired research and development charge related to CD228V, which reflected the Pfizer upfront payment net of the development funding received.
Medicus raised approximately $42.2 million during the nine-month period, with net cash provided by financing activities of $36.2 million, Bonner said. At Sept. 30, the company held $5 million in cash and cash equivalents and $8.1 million in restricted cash. Total liabilities were $25 million, primarily related to a Streeterville Capital debenture executed in May, compared with $10 million at the end of 2025.
Medicus is also seeking partners to advance Teverelix in acute urinary retention relapse prevention, advanced prostate cancer and women’s health. Bokhari said the company was open to global, regional or other collaborations. Its optimized prostate cancer protocol remains subject to FDA feedback, while a redesigned 126-patient acute urinary retention study has received a “Study May Proceed” authorization, he said.
About Medicus Pharma (NASDAQ:MDCX)
Medicus Pharma Ltd. (NASDAQ:MDCX) is a life sciences company focused on acquiring, developing and commercializing pharmaceutical and medical products. The company seeks to identify therapies and healthcare technologies with potential for commercialization and works to advance them through regulatory, clinical and market-development processes.
Medicus Pharma’s activities are centered on specialty healthcare markets, including pharmaceutical and medical products designed to address unmet patient and provider needs.
