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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is understanding the regulation of these genes that brings the term 'epigenetics.' In other words, epigenetics does not have to be a nucleotide change in the DNA itself, but rather a functional regulation of the gene's expression.
Genes expression are controlled by many mechanisms, but Epizyme is focused on DNA methylation. DNA methylation is important for the regulation of gene expression, and functions normally to silence genes in genomic imprinting, X-chromosome inactivation, repressing repetative elements, aging, and cancer. Two specific enzymes, DOT1L & EZH2 are the focus of the Company, and are DNA methylation enzymes (ie, Epizyme!!). By inhibiting these two enzymes, cancer repressor genes will be turned on, and in conjunction with other chemotherapy agents, cancers may be repressed.
Early on, the Company raised $54M, and then GSK and Eisai signed up and pumped in $26M, In May 2013, the Company went public for about $15 (5.9M shares at the time were sold), and shot out of the gate with a 50% premium the first day of trading to ~ $23. The company was a darling. While the company had two drugs in clinic, the compounds were very early on in clinical trials, but things were looking promising. In Phase 1 data for their EZH2 inhibitor, tazemetostat, in genetically defined solid tumors of NHL, the overall response rate (ORR) was ~ 56% ((May 2015) which is very good!). The phase 2 data were less impressive, with an ORR of 28% (June 2016). While the ORR was not as good as Phase 1, data are expected to improve due to the early read on the Phase 2 study. Tazemetostat is the single biggest bet of Epizyme's market.
All the other projects are early on, and therefore Epizyme's stock price is a waiting game for success or failure. There are a lot of shots on goal for Tazemetostat, and therefore a small investment in Epizyme for the future is something to consider.
Disclosure: the author is long Epizyme using shares and options.
