Feb 10, 2025
Welcome back to Small Cap Power—your premier destination for discovering tomorrow’s breakout stocks with the biggest upside potential.
After a brief hiatus, we’re thrilled to relaunch our weekly stock review and bring you the hottest, high-growth opportunities on the market. If you’ve been waiting for the next big thing, you’re in the right place.
This week, we’re turning the spotlight on Rakovina Therapeutics (TSX-V: RKV), an innovative biotech company on the brink of transforming cancer drug discovery. With its groundbreaking use of artificial intelligence (AI), Rakovina is pioneering a new frontier in cancer treatment that could dramatically accelerate the development of life-saving drugs.
The $18B Opportunity Redefining Cancer Treatment
Cancer remains one of the most formidable challenges in modern healthcare, affecting millions of lives and generating billions in research spending. Despite significant milestones, most drug discovery processes still take years and cost a fortune, leaving vast patient needs unmet but advances in AI are now propelling a fundamental shift.
Enter DNA Damage Response (DDR) therapies, a field that exploits the vulnerabilities in cancer cells’ DNA repair mechanisms.
DDR therapies are fast emerging as the next frontier in oncology, capturing the attention of major pharmaceutical players and investors alike. With up to 75% of solid tumors exhibiting DDR-related abnormalities, the potential for new treatments is immense—and the market is projected to reach $18B by 2030. Big Pharma has already taken note, pouring billions into preclinical deals like Artios–Novartis ($1.5B) and Remix–Sanofi ($1.2B).
Amid this high-stakes landscape, Rakovina Therapeutics (TSX-V: RKV) stands out for its AI-driven approach to DDR drug development. Utilizing Deep Docking™ and Enki™ AI platforms, Rakovina is accelerating discovery timelines from years to months—potentially delivering next-generation therapies faster and at lower cost.
Leveraging AI to Compress Drug Discovery Timelines
“With the Deep Docking AI platform, these initial results were achieved in less than five months versus traditional methods of discovery which would take thousands of years,” said Rakovina Therapeutics Executive Chairman Jeffrey Bacha [Source]
Traditional drug discovery is often slow, expensive, and burdened by high failure rates. Rakovina Therapeutics (TSX-V: RKV) has exclusive use to two proprietary AI platforms for DNA-Damage Response compounds & intends to leverage both platforms to tackle two complementary phases of drug development:
1. Deep Docking™
- Lightning-Fast Speed: Screens billions of compounds at up to 100x the usual pace, fueling an accelerated path to viable leads.
- 6,000x Enrichment: By focusing on molecular interactions at a near-atomic level, Deep Docking™ narrows down vast libraries to a select group of high-potential candidates.
- Rapid Validation: Because fewer resources are wasted on unviable compounds, Rakovina can quickly pivot to testing top contenders in preclinical studies.
2. Enki™
- Generative Molecule Design: While Deep Docking™ zeroes in on existing compounds, Enki™ goes a step further—creating entirely new chemical structures from scratch. This opens the door to unique DDR-targeted molecules that might never have been discovered otherwise.
- Optimized for Efficacy and Safety: Enki’s algorithms iteratively refine each molecule’s design based on biological targets, aiming for the ideal balance of potency, selectivity, and safety.
- Accelerated Concept-to-Candidate: By rapidly generating and testing novel structures in silico, Rakovina can identify potential “best-in-class” molecules before committing to costly lab work.
Together, these platforms let Rakovina test existing libraries at lightning speed while also inventing entirely new molecules tailored to DDR. The synergy between Deep Docking™ and Enki™ could slash discovery timelines from years to months, potentially giving Rakovina a formidable advantage in bringing effective cancer therapies to market.
Notably, the first generation Deep Docking™ platform developed a drug that was licensed to Roche Pharma in 2015 for over $140M USD in the largest intellectual property transaction in the history of the University of British Columbia (UBC) at that time. Building on this proven success, Rakovina Therapeutics has secured an exclusive license to the second-generation Deep Docking™ AI platform for DDR therapy screening.
Fast-Tracking Breakthrough Therapies to the Clinic
Rakovina Therapeutics is developing cutting-edge cancer treatments, zeroing in on DNA-Damage Response (DDR) mechanisms to target some of the toughest cancers.
Here’s the scoop on their drug development pipeline:
kt-3000 Series
- What It Does: Combines PARP and HDAC inhibition in one molecule to tackle hard-to-treat cancers like breast, ovarian, and prostate.
- Where It Stands: Progressing through preclinical development.
kt-3000 Series
- AI in Action: Uses AI to design PARP1-selective inhibitors that cross the blood-brain barrier.
- Big Milestone: Synthesized compounds that could treat brain cancers and BRCA-mutated breast cancer.
- Next Step: Optimizing for safety, efficacy, and performance.
kt-5000 Series
- Focus: Early discovery stage, with compounds being fine-tuned for brain exposure and fewer side effects.
Rakovina also has access to UBC’s state-of-the-art labs and collaborates with Variational AI, putting them on a fast track to validating and optimizing innovative cancer treatments.
Rakovina is Disrupting Drug Discovery with AI
Revolutionary science demands visionary leadership, and Rakovina’s team is a powerhouse of world-renowned experts whose collective experience and achievements are setting the stage for groundbreaking advancements in cancer treatment.
- Artem Cherkasov, PhD: A pioneer in computational drug discovery and creator of the Deep Docking™ AI platform. With over 200 publications and multiple licensed drugs, Cherkasov brings unmatched expertise in marrying AI with drug development.
- Petra Hamerlik, PhD: Former DDR lead at AstraZeneca, Hamerlik has a deep understanding of cancer biology and drug mechanisms, making her a key player in targeting hard-to-treat cancers.
- Mads Daugaard, PhD: The company’s President and Chief Scientific Officer is internationally recognized for his groundbreaking research in DNA-damage response and his ability to translate scientific insights into real-world treatments.
Wrapping Up
Rakovina is leveraging a booming market, cutting-edge AI, and a proven track record to fast-track breakthroughs in cancer treatment. If you skipped all the way to the bottom of this email, here is the nutshell on why Rakovina stands out at Small Cap Power:
- Massive Market: DDR therapies are projected to hit $18B by 2030.
- AI Advantage: Deep Docking™ and Enki™ platforms slash research timelines, speeding innovation.
- Proven Track Record: Leaders with a $142M Roche deal bring serious credibility.
- Strategic Partnerships: Collaborations with UBC and Variational AI accelerate progress.
- Strong Backing: A $5M funding boost in 2024 keeps momentum high.
Legal Disclaimer
1. General Information and Liability
This email is paid for and sponsored by Fairfax Partners Inc. (“Fairfax”) on behalf of Rakovina Therapeutics Inc. (“Rakovina”) and is provided exclusively for informational purposes. Fairfax assumes no responsibility for the accuracy, completeness, or timeliness of the information presented in this newsletter. All content has been derived from publicly available, non-material information deemed reliable but is not guaranteed by Fairfax as to its accuracy or completeness.
2. No Endorsement or Financial Advice
Fairfax does not own shares or have any financial interest in Rakovina Therapeutics Inc. Fairfax’s role is strictly limited to managing and distributing this paid for and sponsored newsletter as part of a paid campaign. Fairfax does not provide, endorse, or imply any form of financial, legal, or investment advice, nor does it recommend or endorse the purchase or sale of securities related to Rakovina Therapeutics Inc. Fairfax was compensated CA$120,000 by Rakovina Therapeutics Inc. to manage and promote this campaign through various channels, including SmallCapPower, however, SmallCapPower has not been paid any fees for the distribution of this email.
3. Risk Disclaimer
Investing in securities, including those of Rakovina Therapeutics Inc., involves inherent risks, including the potential loss of capital. Neither Fairfax nor Rakovina Therapeutics Inc. assumes responsibility for any direct, indirect, consequential, or incidental damages or losses incurred by individuals relying on the information provided in this newsletter.
4. Forward-Looking Statements
This newsletter may contain forward-looking statements as defined by Canadian and U.S. securities laws. Such statements reflect Rakovina Therapeutics Inc.’s current expectations and views of future events and may include terms such as “expects,” “anticipates,” “plans,” and “believes,” among others. These statements involve risks, uncertainties, and assumptions that may cause actual results to differ materially from those projected. Rakovina Therapeutics Inc. does not undertake any obligation to update these forward-looking statements except as required by law. Additional details can be found in Rakovina Therapeutics Inc.’s public filings at www.sedar.com.
5. Due Diligence and Professional Advice
Readers are strongly encouraged to perform their own due diligence before making any investment decisions. This includes reviewing Rakovina Therapeutics Inc.’s publicly available financial statements, reports, and other filings, or consulting with independent financial or legal advisors for tailored advice.
6. No Offer or Solicitation
This newsletter does not constitute an offer to sell or a solicitation to buy any securities or financial instruments. Investment decisions made by individuals are their sole responsibility and should be based on their own judgment and analysis. This content is not a substitute for professional investment advice.
7. Limitation of Fairfax’s Role and Responsibilities
Fairfax’s involvement is limited to distributing this paid for and sponsored newsletter as directed by Rakovina Therapeutics Inc. Fairfax has no control over, and assumes no responsibility for, the content provided by Rakovina Therapeutics Inc. Fairfax is not liable for errors, omissions, or inaccuracies in the content or any actions taken by readers based on this information.
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