We sat down for an Interview with David Elsley, President and CEO of Cardiol Therapeutics, a life-sciences company dual-listed as CRDL on both the NASDAQ and the TSX.
Ketki Saxena: Hi, David. Thanks so much for meeting with me today. Let’s start with an overview of Cardiol Therapeutics.
David Elsley: Cardiol Therapeutics is developing medicines for heart failure. One of the major culprits…that has not been addressed by therapeutics is chronic [heart] inflammation…Our team is focused on developing anti-inflammatory strategies to address the chronic inflammatory component in areas of heart failure medicine, which includes chronic heart failure but also include acute forms of heart failure, such as myocarditis, which…is now described as a complication of COVID. It is also a rare but increasing complication of mRNA vaccine strategies.
Ketki: There’s no other company that's doing exactly what you are, but there have been recent high-profile transactions in the space, such as MyoKardia and GW Pharma. What has been the impact of that on Cardiol or on the market?
David: I think MyoKardia is the best analogy to what we are working to build at Cardiol. MyoKardia in 2017 was developing a new novel therapeutic for a rare cardiac indication [and was] valued at similar levels to Cardiol today. Just three short years later, they were acquired by Bristol-Myers for over [USD] $13 billion…GW Pharma was the first organization to develop cannabidiol-based medicine and have it FDA approved for the treatment of rare pediatric conditions, and they were acquired for about [USD] $7.2 billion.
So there are really two interesting analogies. One, we are developing the anti-inflammatory properties of cannabidiol-based medicines for cardiac disease, so we have the interesting analogy with GW Pharma, who were first-in-class to develop that in another form of disease. Their acquisition by Jazz Pharmaceuticals for $7.2 billion really brought credibility and attention to that new area of medicine. Then in the case of MyoKardia, it really underscores the value proposition and the need for new therapeutics underscored by the fact that big pharma paid over $13 billion for that company.
Ketki: It sounds like 2021 was a great year for the space and also for Cardiol. Amongst other milestones, I understand the company completed a public offering for over USD $50 million in gross proceeds. Tell us a little bit about that process and your future goals.
David: In August of 2021, Cardiol up-listed to the NASDAQ and became a NASDAQ-listed security. Then shortly thereafter, we received the attention of two very prominent life sciences banks in the United States who sponsored a $50 million U.S. public offering for the company. Following that, we received our first analyst coverage in the United States. We [also] received two clearances for major clinical trials in major disease areas.
Ketki: Whilst we're talking about your recent round of financing, do you foresee raising additional funds in public markets this year? And what is the cash position?
David: The company's last publicly reported cash position for the end of 2021 was [CAD] $83.9 million. The company has no stated plans for further capital raises. We're…fortunate to be in a very strong financial position because of our capital markets transactions that occurred in 2021, which has put the company on a very strong footing to execute its strategic initiatives in 2022 and 2023…[Our key goals are] to complete the landmark Phase II-III LANCER trial, which is anchored out of the United States, followed by initiation and completion of the global trial in acute myocarditis.
Ketki: You mentioned that you have been recently dual-listed on the NASDAQ in the U.S. You're already listed on the TSX in Canada. What benefits have you seen since you cross-listed last summer and what advantages do you think being dual-listed provides to companies and to investors?
David: The NASDAQ is widely recognized as the premier exchange for life sciences companies, and it provides a platform by which we can build ever-increasing awareness of the valuable therapeutics that we are developing for heart medicine within the pharmaceutical sector, within the healthcare communities, within the cardiology community and within the investment community.
Ketki: OK, thank you, David. Now, just before we close out, is there anything we haven't covered so far that investors should know about Cardiol or the life sciences sector?
David: I think [a] key feature of Cardiol Therapeutics is we have an extraordinary management team. We have an international Board of Directors with extraordinary experience across the life sciences space, pharmaceutical industry, and the development of new, important therapeutics. We have steering committees, advisory panels and our international research network comprising some of the foremost experts in heart failure medicine and chronic inflammatory conditions associated with heart failure medicine from around the world, so we have great strength and [a great] team.
We have a very strong financial position and…three major programs that we believe can be transformative in the treatment of chronic inflammation affecting patients with cardiovascular disease.
Ketki: Great. Thank you, David. That's all from me today. Thanks again for your time.
David: Thanks for your interest in the story.