Skip to content
KStart free
AI InfrastructureDefenseQuantumAll studies →

BPTH US Equity

Bio-Path Holdings, Inc.Health Care · Pharmaceutical Preparations · CIK 1133818 · FY ends Dec 31
$0.03
+0.00 (+1.19%)
USD · as of 2026-08-19 · marketstack

BPTH · 10-K · period ended 2020-12-31

← all BPTH documents
filed 2021-03-09 · EDGAR original ↗

Our rendering of the filing — original pagination and typography are not reproduced, and tables are reduced to their short label cells (the figures live on FA). Nothing is summarized: every line below is the filing's own text.

blocks 1600 of 3,469316k characters rendered

10-K

1

tm211142d1_10k.htm

FORM 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

For the fiscal year ended December 31,

2020

OR

For the transition period from __ to __

Commission file number 001-36333

BIO-PATH HOLDINGS, INC.

(Exact name of registrant as specified in

its charter)

or organization)

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number,

including area code: (832) 742-1357

Securities registered pursuant to Section 12(b) of

the Act:

Title of each class Trading Symbol Name of each exchange on which registered

Common Stock, par value $0.001 per share BPTH The Nasdaq Capital Market

Securities registered pursuant to Section 12(g) of

the Act: None

Indicate

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ̈No x

Indicate

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ̈No x

Indicate

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes xNo ̈

Indicate

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit such files). Yes xNo

̈

Indicate by check mark whether the registrant is a large accelerated

filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions

of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging

growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ̈ Accelerated filer ̈

Non-accelerated filer x Smaller reporting company x

Emerging growth company ̈

If

an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ̈

Indicate

by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness

of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by

the registered public accounting firm that prepared or issued its audit report. ̈

Indicate

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ̈No x

As of March 1, 2021, there were 6,947,912 shares of the

registrant’s common stock issued and outstanding. The aggregate market value of the voting stock held by non-affiliates

of the registrant was approximately $18,472,208.15 as of June 30, 2020, the last business day of the registrant’s most

recently completed second fiscal quarter, based on the last sales price of the registrant’s common stock as reported on

The Nasdaq Capital Market on such date. For purposes of the preceding sentence only, all directors, executive officers and beneficial

owners of 10% or more of the shares of the registrant’s common stock are assumed to be affiliates.

DOCUMENTS INCORPORATED BY REFERENCE: NONE

TABLE OF CONTENTS

Page

PART I 2

Item 1. Business 2

Item 1A. Risk Factors 25

Item 1B. Unresolved Staff Comments 51

Item 2. Properties 51

Item 3. Legal Proceedings 51

Item 4. Mine Safety Disclosures 51

Item 6. [Reserved] 52

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 60

Item 8. Financial Statements and Supplementary Data 60

Item 9A. Controls and Procedures 60

Item 9B. Other Information 61

PART III 62

Item 10. Directors, Executive Officers and Corporate Governance 62

Item 11. Executive Compensation 67

Item 14. Principal Accounting Fees and Services 78

Item 15. Exhibits and Financial Statement Schedules 80

Unless the context requires otherwise,

references in this Annual Report on Form 10-K to “we,” “our,” “us,” “the Company”

and “Bio-Path” refer to Bio-Path Holdings, Inc. and its subsidiary. Bio-Path Holdings, Inc.’s wholly-owned

subsidiary, Bio-Path, Inc., is sometimes referred to herein as “Bio-Path Subsidiary.”

CAUTIONARY NOTE REGARDING FORWARD-LOOKING

STATEMENTS

This Annual Report on Form 10-K contains

“forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the

“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Forward-looking statements can be identified by words such as “anticipate,” “expect,” “intend,”

“plan,” “believe,” “seek,” “estimate,” “project,” “goal,”

“strategy,” “future,” “likely,” “may,” “should,” “will”

and variations of these words and similar references to future periods, although not all forward-looking statements contain these

identifying words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they

are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies,

projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate

to the future, they are subject to inherent risks, uncertainties and changes in circumstances, including those discussed in “Item

1A. Risk Factors” of this Annual Report on Form 10-K and in other reports or documents we file with the U.S. Securities

and Exchange Commission (“SEC”). As a result, our actual results and financial condition may differ materially from

those expressed or forecasted in the forward-looking statements, and you should not rely on such forward-looking statements. We

can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do,

what impact they will have on our results of operations and financial condition. Important factors that could cause our actual

results and financial condition to differ materially from those indicated in the forward-looking statements include, among others,

the following:

· our ability to retain and attract key personnel;

· disruptions to our operations due to expansions of our operations;

· risks associated with product liability claims;

· our ability to use net operating loss carryforwards;

· risks that that our clinical trials may be delayed or terminated;

· changes in existing laws and regulations affecting the healthcare industry;

· our ability to maintain orphan drug exclusivity for our drug candidates;

· our reliance on third parties for manufacturing our clinical drug supplies;

· risks associated with the manufacture of our drug candidates;

· market acceptance of our drug candidates;

· third-party payor reimbursement practices;

· infringement on the intellectual property rights of third parties;

· costs and time relating to litigation regarding intellectual property rights;

· our need to raise additional capital;

· the volatility of the trading price of our common stock;

· our common stock being thinly traded;

· our ability to pay cash dividends;

· costs and expenses associated with being a public company; and

Please also refer to “Item 1A. Risk

Factors” of this Annual Report on Form 10-K and other reports or documents we file with the SEC for a discussion of

risks and factors that could cause our actual results and financial condition to differ materially from those expressed or forecasted

in this Annual Report on Form 10-K.

Any forward-looking statement made by us

in this Annual Report on Form 10-K is based only on information currently available to us and speaks only as of the date

on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information,

future developments or otherwise. However, you should carefully review the risk factors set forth in other reports or documents

we file from time to time with the SEC.

PART I

ITEM 1. BUSINESS

Overview

We are a clinical and preclinical stage

oncology focused RNAi nanoparticle drug development company utilizing a novel technology that achieves systemic delivery for target

specific protein inhibition for any gene product that is over-expressed in disease. Our drug delivery and antisense technology,

called DNAbilize®, is a platform that uses P-ethoxy, which is a deoxyribonucleic acid (DNA) backbone modification that is intended

to protect the DNA from destruction by the body’s enzymes when circulating in vivo, incorporated inside of a lipid bilayer

having neutral charge. We believe this combination allows for high efficiency loading of antisense DNA into non-toxic, cell-membrane-like

structures for delivery of the antisense drug substance into cells. In vivo, the DNAbilize® delivered antisense drug substances

are systemically distributed throughout the body to allow for reduction or elimination of target proteins in blood diseases and

solid tumors. Through testing in numerous animal studies and treatment in over 80 patients, the Company’s DNAbilize®

drug candidates have demonstrated an excellent safety profile. DNAbilize® is a registered trademark of the Company.

Using DNAbilize® as a platform for

drug development and manufacturing, we currently have four drug candidates in development to treat at least five different cancer

disease indications. Our lead drug candidate, prexigebersen (pronounced prex” i je ber’ sen), which targets growth

factor receptor-bound protein 2 (Grb2), initially started the efficacy portion of a Phase 2 clinical trial for untreated acute

myeloid leukemia (“AML”) patients in combination with low-dose cytarabine (“LDAC”). The interim data we

released on March 6, 2019 showed that 11 (65%) of the 17 evaluable patients had a response, including five (29%) who achieved

complete remission (“CR’), including one CR with incomplete hematologic recovery (“CRi“) and

one morphologic leukemia free state, and six (35%) stable disease responses, including two patients who had greater than a 50%

reduction in bone marrow blasts. However, DNA hypomethylating agents are now the most frequently used agents in the treatment

of elderly AML patients in the U.S. and Europe. As a result, Stage 2 of the Phase 2 trial in AML was amended to, among other things,

remove the combination treatment of prexigebersen and LDAC and replace it with the combination treatment of prexigebersen and

decitabine, a DNA hypomethylating agent, for treatment of a second cohort of untreated AML patients. Since decitabine is also

used as a treatment for relapsed/refractory AML patients, a cohort of relapsed/refractory AML patients was also added to the study.

The U.S. Food and Drug Administration (“FDA”)

recently granted approval of venetoclax in combination with LDAC, decitabine, or azacytidine (the latter two drugs are DNA hypomethylating

agents) as frontline therapy for newly diagnosed AML in adults who are 75 years or older, or who have comorbidities precluding

intensive induction chemotherapy. We believe this recent frontline therapy approval provides an opportunity to include prexigebersen

with the combination therapy for the treatment of de novo AML patients. Preclinical efficacy studies for the triple combination

treatment of prexigebersen, decitabine and venetoclax in AML have been successfully completed. In the preclinical efficacy studies,

four AML cancer cell lines were treated with three different combinations of decitabine, venetoclax and prexigebersen. Decrease

in AML cell viability was the primary measure of efficacy. The triple combination of decitabine, venetoclax and prexigebersen showed

significant improvement in efficacy in three of the four AML cell lines. Based on these results, the Company believes that adding

prexigebersen to the treatment combination of decitabine and venetoclax could lead to improved efficacy in AML patients. Accordingly,

the Company further amended Stage 2 of this Phase 2 clinical trial to add the triple combination treatment comprised of prexigebersen,

decitabine and venetoclax, which amendment has been approved by the FDA.

Bio-Path’s approved amended Stage

2 for this Phase 2 clinical trial currently has three cohorts of patients. The first two cohorts will treat patients with the triple

combination of prexigebersen, decitabine and venetoclax. The first cohort will include untreated AML patients, and the second cohort

will include relapsed/refractory AML patients. Finally, the third cohort will treat relapsed/refractory AML patients, who are venetoclax-resistant

or -intolerant, with the two-drug combination of prexigebersen and decitabine. The full trial design plans have approximately 98

evaluable patients for the first cohort having untreated AML patients with a preliminary review performed after 19 evaluable patients

and a formal interim analysis after 38 evaluable patients. The full trial design plans have approximately 54 evaluable patients

for each of the second cohort, having relapsed/refractory AML patients, and the third cohort, having AML patients who are venetoclax-resistant

or -intolerant, in each case with a review performed after 19 evaluable patients. The study is anticipated to be conducted at ten

clinical sites in the U.S., and Gail J. Roboz, MD will be the national coordinating Principal Investigator for the Phase 2 trial.

Dr. Roboz is a professor of medicine and director of the Clinical and Translational Leukemia Program at the Weill Medical

College of Cornell University and the New York-Presbyterian Hospital in New York City. On August 13, 2020, we announced the

enrollment and dosing of the first patient in this approved amended Stage 2 of the Phase 2 clinical study.

Our second drug candidate, Liposomal Bcl-2

(“BP1002”), targets the protein Bcl-2, which is responsible for driving cell survival in up to 60% of all cancers.

On November 21, 2019, we announced that the FDA cleared an Investigational New Drug (“IND”) application for BP1002.

An initial Phase 1 clinical trial will evaluate the safety of BP1002 in refractory/relapsed lymphoma and chronic lymphocytic leukemia

(“CLL”) patients. Initially, a total of six evaluable patients are scheduled to be treated with BP1002 monotherapy

in a standard 3+3 design. The Phase 1 clinical trial is being conducted at several leading cancer centers, including The University

of Texas MD Anderson Cancer Center (“MD Anderson”), the Georgia Cancer Center and the Sarah Cannon Research Institute,

and is now open for enrollment. Ian W. Flynn, MD is the national coordinating Principal Investigator for the Phase 1 trial. Dr. Flynn

serves as the director of lymphoma research at the Sarah Cannon Research Institute.

Our third drug candidate, Liposomal STAT3

(“BP1003”), targets the STAT3 protein and is currently in IND enabling studies as a potential treatment of pancreatic

cancer, non-small cell lung cancer (“NSCLC”) and AML. Preclinical models have shown BP1003 to inhibit cell viability

and STAT3 protein expression in NSCLC and AML cell lines. Further, BP1003 successfully penetrated pancreatic tumors and significantly

enhanced the efficacy of gemcitabine, a treatment for patients with advanced pancreatic cancer, in a pancreatic cancer patient

derived tumor model. Our lead indication for BP1003 is pancreatic cancer due to the severity of this disease and the lack of effective,

life-extending treatments. For example, pancreatic adenocarcinoma is projected to be the second most lethal cancer behind lung

cancer by 2030. Typical survival for a metastatic pancreatic cancer patient is about three to six months from diagnosis. We expect

to complete several IND enabling studies of BP1003 in 2021. If those studies are successful, our goal is to file an IND in late

2021 for the first-in-humans Phase 1 study of BP1003 in patients with refractory, metastatic solid tumors, including pancreatic

cancer and NSCLC.

In addition, a modified product named prexigebersen-A,

Bio-Path’s fourth drug candidate, has shown to enhance chemotherapy efficacy in preclinical solid tumor models. Prexigebersen-A

incorporates the same drug substance as prexigebersen but has a slightly modified formulation designed to enhance nanoparticle

properties. In late 2019, we filed an IND application to initiate a Phase 1 clinical trial of prexigebersen-A in patients with

solid tumors, including ovarian, endometrial, pancreatic and breast cancer. Ovarian cancer is one of the most common type of gynecologic

malignancies, with approximately 50% of all cases occurring in women older than 63 years. This trial is expected to commence after

the IND has been cleared by the FDA, which we currently anticipate being in 2021.

Our DNAbilize® technology-based products are available

for out-licensing or partnering. We intend to apply our drug delivery technology template to new disease-causing protein targets

to develop new nanoparticle antisense RNAi drug candidates. We have a new product identification template in place to define a

process of scientific, preclinical, commercial and intellectual property evaluation of potential new drug candidates for inclusion

into our drug product development pipeline. As we expand, we will look at indications where a systemic delivery is needed and

antisense RNAi nanoparticles can be used to slow, reverse or cure a disease, either alone or in combination with another drug.

On September 25, 2019, we announced that the United States Patent and Trademark Office (“USPTO”) issued a patent

for claims related to DNAbilize®, including its use in the treatment of cancers, autoimmune diseases and infectious diseases.

On October 22, 2020 we announced that the USPTO issued a Notice of Allowance for U.S. Patent Application No. 16/333,221

entitled “Combination Therapy with Liposomal Antisense Oligonucleotides.” On February 10, 2021, we announced

that the USPTO granted U.S. Patent No. 10,898,506 titled, “P-ethoxy nucleic acids for liposomal formulation.”

The new patent builds on earlier patents granted that protect the platform technology for DNAbilize®, the Company’s

novel RNAi nanoparticle drugs. The new patent is the third patent in our family of platform intellectual property and offers expanded

defense of our DNAbilize® platform technology. In addition, the USPTO has mailed an Issue Notification for a patent

related to the Company’s lead product candidate, prexigebersen, in combination with either a cytidine analogue, such as

decitabine, or the Bcr-Abl tyrosine kinase inhibitors dasatinib and nilotinib. This patent was issued as U.S. Patent No. 10,927,379

on February 23, 2021. The patent will offer target-specific protection for on-going clinical trials using prexigebersen in

combination with decitabine as a treatment for AML. We continue our efforts to build protection around our technology as it safeguards

our platform technology and target-specific technology, is a deterrent to would-be competitors and creates value around our core

competencies.

We have certain intellectual property as

the basis for our current drug products in clinical development, prexigebersen, prexigebersen-A, BP1002 and BP1003. We are developing

RNAi antisense nanoparticle drug candidates based on our own patented technology to treat cancer and autoimmune disorders where

targeting a single protein may be advantageous and result in reduced patient adverse effects as compared to small molecule inhibitors

with off-target and non-specific effects. We have composition of matter and method of use intellectual property for the design

and manufacture of antisense RNAi nanoparticle drug products.

Our pipeline for development of antisense

therapeutics is set forth in Figure 1 below:

Figure 1. Bio-Path Pipeline for Development

of Therapeutics

* Received orphan drug designation

from the U.S. FDA and from the European Medicines Agency (EMA) for AML

Our basic drug development concept is to

block expression of proteins associated with disease. Messenger RNA (mRNA) is essential in the process of creating proteins. We

have developed DNAbilize® nanoparticle drug delivery systems to deliver short strands of antisense DNA drugs to

cells and block the production of proteins associated with disease progression (Figure 2).

Figure 2.

Antisense DNA therapeutics is the field

of designing short DNA sequences that are complementary to a mRNA for a protein of interest with the intention of inhibiting the

production of the targeted protein. The DNA will find the matching RNA and form a complex. The complexed RNA will not have access

to the protein-making machinery, which prevents the cell from translating it into a protein. Thus, protein production is turned

off and levels of the targeted protein are reduced in the cell. This gene-specific process of controlling protein expression has

led to great interest in using antisense DNA to shut off the production of proteins involved in disease. Antisense therapeutics

have been in development for over 20 years. However, challenges to antisense therapeutics, such as instability of antisense drugs

inside of the body and inefficient delivery of antisense to disease cells, have thawed antisense therapeutic potential.

We believe our DNAbilize®

technology, which is the combination of the protected P-ethoxy antisense DNA backbone with the neutral liposome nanoparticle, is

the ideal approach for antisense DNA therapeutics because it overcomes the challenges associated with both antisense stability

and intracellular delivery. The P-ethoxy modification used in our DNAbilize® technology is completely sulfur free.

We avoid using sulfur-containing antisense because it has been associated with causing liver toxicity and life-threatening bleeding

and clotting complications. We prefer neutral lipids to cationic lipids for intracellular delivery because encapsulating the antisense

DNA inside a neutral charged lipid bilayer facilitates the delivery and transfer of DNA into the cell to be fluid and gentle. While

many companies have focused research on either the DNA stabilization problem or the lipid delivery problem, we are not aware of

any company that has developed improvements in both areas. DNAbilize® is truly a stand-alone platform because, as

demonstrated by our published preclinical studies, it allows for high doses of drug products to be delivered throughout the entire

body while minimizing toxicity. This allows our research and development efforts to focus on drug targets rather than on indications

because the DNAbilize® system should not be limited in what types of indications it can treat. As such, we believe

that DNAbilize® represents the first ever antisense therapeutic approach that can successfully treat hematological

and systemic diseases.

Because of our unique ability to address

unmet needs in hematological malignancies, our lead drug candidates focus on cancers of the blood and lymph. Our lead drug candidate,

prexigebersen, targets the protein Grb2, a bridging protein between activated and mutated cellular kinases and the proteins involved

in cell propagation, and in particular, the Ras protein. When mutations occur that activate these kinases, the cell propagates

uncontrollably, via Grb2, and this results in disease progression. Inhibition of Grb2 interrupts this pathway and shuts off propagation

signals.

The efficacy of prexigebersen in combination

with standard of care therapies is being evaluated in a Phase 2 clinical trial for AML patients. The multi-site trial is being

conducted at leading cancer centers, including Weill Medical College of Cornell University, Baylor Scott &White Health,

The University of Kansas, New Jersey Hematology Oncology Associates, West Virginia University/Mary Babb Randolph Cancer Center

and MD Anderson.

Our second drug candidate, BP1002, targets

the protein Bcl-2. Bcl-2 is an anti-apoptotic member of the Bcl-2 family of proteins that regulate cell death. Overexpression

of Bcl-2 results in deregulated cell survival in cancer cells, thus reducing their sensitivity to many of the drugs currently

used in the clinic, which mediate their therapeutic effects (at least in part) through the activation of the Bcl-2-regulated apoptotic

pathway. The Phase 1 clinical trial will evaluate the safety of BP1002 in refractory/relapsed lymphoma and CLL patients. The Phase

1 clinical trial is being conducted at several leading cancer centers, including MD Anderson, the Georgia Cancer Center and the

Sarah Cannon Research Institute.

The intended indications of our two other

drug candidates, prexigebersen-A and BP1003, are in solid tumors. Safety and efficacy of prexigebersen-A in combination with paclitaxel

will be investigated in patients with recurrent ovarian or endometrial cancer. Safety and efficacy of BP1003 in combination with

gemcitabine will be investigated in patients with refractory, metastatic pancreatic cancer.

Strategy

Our strategy is to develop our lead candidates,

prexigebersen, prexigebersen-A, BP1002 and BP1003, for multiple indications where the pathways involving Grb2, Bcl-2 and STAT3,

respectively, are utilized to promote cancer growth, survival, angiogenesis and tumor surveillance evasion. Using DNAbilize®

technology, we plan to develop therapeutics to a wide range of diseases and disorders independently and in partnership with others.

The key elements of our strategy include:

Overview of Drug Candidates

The historical perspective of cancer treatments

has been the use of drugs that affect the entire body. Advances in the past decade have shifted to treating the tumor tissue itself.

One of the main strategies in these developments has been targeted therapy, involving drugs that are targeted to block the expression

of specific disease-causing proteins while having little or no effect on other healthy tissue. We believe that nucleic acid drug

products, specifically antisense, are a promising field of targeted therapy. Development of antisense as cancer drugs, however,

has been limited by the lack of a suitable method to deliver antisense drugs to cancer cells with high uptake into the cancer cells

without causing toxicity to non-cancer cells. Our currently licensed DNAbilize® neutral-lipid based liposome technology

is designed to overcome these limitations. We have published preclinical studies demonstrating that our DNAbilize®

technology could efficiently deliver antisense therapeutics to mouse models of hematological malignancies and solid tumors, decrease

target proteins production and suppress tumor progression. In addition, to date, no adverse effects attributed to the study drugs

have been observed in our leukemia and lymphoma clinical trials.

PREXIGEBERSEN

Prexigebersen is targeted at the protein

Grb2. Antisense inhibition of Grb2 interrupts the signals between mutated and activated receptors that connect to a well-known

cancer associated switch called Ras protein. Inhibition of Grb2 suppresses cancer cells propagation and does not result in adverse

events typically observed with receptor inhibitors or Ras pathway inhibitors. We believe that prexigebersen has the potential

to be an ideal combination for any number of cancer therapeutics where the Ras pathway is aberrantly activated and patient fitness

is a major concern, such as in AML.

Indications for Acute Myeloid Leukemia (AML),

Myelodysplastic Syndrome (MDS)

AML - Background and Common Treatments.

AML is the rapid accumulation of immature myeloid cells in the blood, resulting in a drop of the other cell types such as red

blood cells and platelets. The expansion of immature monocytes leaves the patient unable to fight infection. If AML is left untreated,

it usually results in death within three months. AML incidence increases with age, with more than 50% of the cases in people age

60 or older. AML is the most common acute leukemia in adults, and the National Cancer Institute estimates that approximately 20,000

new cases occur each year (Figure 3). The cure rate is between 5 to 15% in older adults, and those who cannot receive the standard

course of chemotherapy have an average survival rate of five to ten months. Prior to venetoclax approval, the frontline low-intensity

therapies for elderly AML patients were LDAC, decitabine or azacytidine (the latter two drugs are DNA hypomethylating agents).

The FDA recently granted approval of venetoclax (a Bcl-2 inhibitor) for the newly diagnosed AML patients aged 75 years and older

or adults who cannot be treated with intensive induction chemotherapy. Venetoclax is used in combination with LDAC, decitabine

or azacytidine. Mutation in the Bcl-2 binding domain, which reduces venetoclax’s ability to bind to Bcl-2, has been linked

with venetoclax resistance in CLL patients. Such venetoclax resistance may also occur in AML patients. AML remains an area of

high unmet need for both the relapsed and the de novo elderly population who are typically ineligible for induction therapy.

Figure 3. Basic Statistics for AML

MDS - Background and Common Treatments.

MDS is a bone marrow disease, characterized by a reduced number of mature blood cells. MDS is diagnosed in about 15,000 people

in the United States (“U.S.”) yearly. MDS patients are stratified into different risk groups. Higher risk MDS patients

have a survival of less than two years and, if untreated, can evolve into secondary AML. Secondary AML patients are often older

and treated with DNA hypomethylating agents. Higher risk MDS and secondary AML patients who have progressed from DNA hypomethylating

agents have very poor prognosis. Novel treatment strategies for these patients are needed. The Company expects to design a clinical

trial in the future evaluating MDS patients with prexigebersen.

Prexigebersen Development and Treatment

for Leukemia. The safety, pharmacokinetics, and efficacy of our lead DNAbilize® antisense drug candidate, prexigebersen,

was assessed in patients having AML, CML, MDS or ALL in a Phase 1 trial. The Phase 1 clinical trial was a dose-escalating study

to determine the safety and tolerability of escalating doses of prexigebersen. Additionally, the pharmacokinetics and anti-leukemic

effects, including down-regulation of the target Grb2 protein in patient samples, of the drug candidate were determined. Results

of the clinical study were published in the scientific journal Lancet Haematology in 2018.

Phase 1 Clinical Trial

Two new assays to provide scientific proof

of concept of the delivery technology were developed in the Phase 1 clinical trial. The first assay involved a method to measure

down-regulation of the target protein in a patient blood sample that was achieved. The measurement provided critical proof that

DNAbilize® neutral liposome delivery technology delivered the drug substance to the cell and was able to transport it across

the cell membrane into the interior to block cellular production of the Grb2 protein. The second assay involved a novel detection

method for the drug substance in blood samples to assess the pharmacokinetics of the drug.

In August 2013, we announced that

our DNAbilize® liposomal delivery technology achieved a major milestone in the development of antisense therapeutics based

on a scientific assay confirming that treating patients with our drug candidate prexigebersen inhibits the Grb2 disease-causing

target protein in patients with blood cancers (Figure 4). Inhibition of the disease-causing protein has the effect of down regulating

the disease. This will allow for prexigebersen to be used potentially in combination with current frontline treatments. This discovery

also points to the potential use of a liposomal antisense treatment as a standalone treatment to transform and manage a disease

that has a disease-causing protein as a chronic disorder. This accomplishment is a potentially significant breakthrough for antisense

therapeutics, whose development, to date, as a class of therapeutics has been severely limited by a lack of a systemic delivery

mechanism that can safely distribute the drug throughout the body and deliver the antisense drug substance across the cell membrane

into the interior of the cell. Further, we expect that scientific proof of principle for DNAbilize® may lead to licensing

and business development opportunities, supporting our business model.

Inhibition of Target Grb2 Protein

· Grb2 levels were compared to baseline prior to treatment.

Figure 4. Grb2 Protein and Downstream

pERK are

Downregulated in Prexigebersen Treated

Patient’s Cells

Grb2 levels decreased in 10 out of 12

patient samples by end of treatment (EOT)

pErk levels decreased in 7 of 12 patient

samples by EOT

Subject Prexigebersen (mg/m2) Cohort Grb2 Decrease (EOT) pERK Decrease (EOT)

A Phase 1 clinical trial is typically ended

when a maximum tolerated dose (“MTD”) is encountered. However, due to the lack of toxicity of prexigebersen, a MTD

was not observed. Lack of toxicity is a major advantage for the drug candidate prexigebersen since it allows higher levels of drug

to be administered to the patient, increasing the potential therapeutic benefit. During the Phase 1 trial, 80% of the evaluable

patients had refractory/relapsed AML, having failed at least 6 prior therapies. In our study, 83% of patients showed decreased

circulating blasts and anti-leukemic activity and eight patients stabilized for extended treatments.

Phase 2 Clinical Trials

On February 9, 2015, we announced

that we began enrollment into the combination therapy Phase 1b clinical trial for prexigebersen in patients with AML. The combination

therapy Phase 1b clinical trial consisted of two dosing cohorts of prexigebersen (60 mg/m2 and 90 mg/m2)

to test the safety profile of treating AML patients with prexigebersen in combination with LDAC. Patients ineligible for intensive

induction therapy are currently treated with LDAC.

An important outcome of the Phase 1b clinical

trial was the ability to assess the pharmacokinetics of the drug. On June 6, 2016, we announced that no dose limiting toxicities

were observed in patients treated with the combination therapy of prexigebersen and LDAC. Of the six evaluable patients from the

Phase 1b clinical trial, four patients completed more than two cycles of treatment, three patients achieved CR and two patients

had over 50% decrease in bone marrow blast counts (Figure 5). Pharmacokinetics of prexigebersen demonstrated a half-life at 60

mg/m2 of 30 hours, significantly better than the 90 mg/m2 dose. The final analysis of these data, along

with the demonstrated reductions in bone marrow blasts, suggested that 60 mg/m2 is the appropriate dose for use in

the Phase 2 trial.

Figure 5. Five out of six patients in

cohorts 7 and 8 receiving the combination

prexigebersen + LDAC have greater than 50% decrease in bone marrow blasts

A summary of the clinical trial results

for the Phase 1 monotherapy for indications of AML, CML, MDS and ALL, and Phase 1b combination therapy for prexigebersen for indications

of AML is shown in Figure 6 below. The first six cohorts, patients 001 to 034, were treated in the Phase 1 clinical trial using

prexigebersen as a monotherapy. The seventh cohort, patients 035, 037 and 038, were treated in our Phase 1b clinical trial evaluating

the combination therapy of 60 mg/m2 prexigebersen. The eighth cohort, patients 039, 040 and 041, were treated with

combination therapy of 90 mg/m2.

Figure 6. Summary Cohorts 1-8 Prexigebersen

Clinical Trial Phase 1 and 1B

Peripheral or bone marrow blast %

Patients Diagnosis Baseline Nadir Off- Tx Reason Discontinued Cycles Completed

23 MDS NE NE NE PD 1

Nadir: the lowest point, Off-TX: off treatment, No: no reduction

in blasts, DLT: dose limiting toxicity, PD: progressive disease, NE: not enough sample to evaluate, ND: not done, CR: complete

remission with incomplete hematologic recovery, CR: complete remission, SD: stable disease

Results from the Phase 1b clinical trial

demonstrated it is safe to add prexigebersen to LDAC, which appears to yield better response rates in this AML patient population.

On November 2, 2016, we announced that the first patient in the efficacy portion of the Phase 2 trial was dosed. The full

trial design includes approximately 54 evaluable patients with an interim analysis to be performed after 19 patients are treated

with the combination. The multi-site trial was conducted at leading cancer centers, among them are Weill Medical College of Cornell

University, Baylor Scott & White Health, The University of Kansas, New Jersey Hematology Oncology Associates, West Virginia

University/Mary Babb Randolph Cancer Center, and MD Anderson.

Thirty-three patients were pre-screened

for the efficacy portion of the Phase 2 prexigebersen + LDAC combination study. Thirty patients were enrolled and 17 patients

were deemed evaluable. The interim data that we released on March 6, 2019 showed that 11 (65%) of the 17 evaluable patients

had a response, including five (29%) who achieved CR, including one CRi and one morphologic leukemia free state, and

six (35%) stable disease responses, including two patients who had greater than a 50% reduction in bone marrow blasts. The efficacy

data from the 17 evaluable patients was very favorable compared to the reported CR, CRp and CRi rates of 7 to 13% with LDAC treatment

alone. Importantly, through investigation by the principal investigators, it was observed that 68% of patients were secondary

AML patients, a difficult class to treat.

Results to date have shown prexigebersen,

with its efficacy and excellent safety profile, to be an effective combination candidate with frontline therapy. However, DNA

hypomethylating agents are now the most frequently used agents in the treatment of elderly AML patients in the U.S. and Europe.

As a result, we amended Stage 2 of the Phase 2 trial in AML to remove the combination treatment of prexigebersen and LDAC and

replace it with the combination treatment of prexigebersen and decitabine. Since decitabine is also used as a treatment for relapsed/refractory

AML patients, a cohort of relapsed/refractory AML patients was also added to the study.

We believe the recent approval of the frontline

venetoclax and decitabine combination therapy provides an opportunity for combining prexigebersen with the combination therapy

for the treatment of de novo AML patients. Preclinical testing of prexigebersen with venetoclax and decitabine demonstrated

the potential to enhance efficacy of the frontline treatment combination. The triple combination of prexigebersen, venetoclax and

decitabine showed significant improvement in decreasing the viability of three of the four AML cell lines tested. Bio-Path’s

approved amended Stage 2 for this Phase 2 clinical trial has three cohorts of patients. The first two cohorts will treat patients

with the triple combination of prexigebersen, decitabine and venetoclax with the first cohort including untreated AML patients

and the second cohort including relapsed/refractory AML patients. Finally, the third cohort will treat relapsed/refractory AML

patients who are venetoclax-resistant or -intolerant with the two-drug combination of prexigebersen and decitabine.

The first step in establishing the amended

Stage 2 of the Phase 2 trial in AML was demonstrating the safety of treating patients with the two-drug combination of prexigebersen

and decitabine, which was reported in November 2019. The safety segment of Stage 2 of the Phase 2 clinical trial comprised

six evaluable patients who were treated with the combination of prexigebersen and decitabine. Although the treatment combination

of prexigebersen and decitabine is not the treatment planned for the efficacy evaluation of Stage 2 of the Phase 2 clinical trial,

the efficacy profile in this safety segment of the study was encouraging with 50% of patients having a response, including two

complete responses (33%) with incomplete hematologic recovery and one patient (17%) showing partial response. For reference, in

this class of AML patients, the complete response rate to treatment with decitabine alone is approximately 20%.

Importantly, results from patients who

were previously treated with the two-drug combination of prexigebersen and decitabine prior to the amendment to Stage 2 of the

Phase 2 trial in AML and who meet the criteria for enrollment in the third cohort of the amended Stage 2 of the Phase 2 trial

in AML can be included in the third cohort results. This represents a beneficial head-start in the third cohort enrollment. This

third cohort represents a significant, unmet opportunity in clinical treatment, as options are limited for AML patients who fail

frontline therapy.

On August 13, 2020, we announced the

enrollment and dosing of the first patient in the amended Stage 2 of the Phase 2 clinical study. This patient was in the relapsed/refractory

cohort and treated with the triple combination of prexigebersen, decitabine and venetoclax. Additionally, the first six evaluable

patients in the amended Stage 2 of the Phase 2 trial in AML have now been treated with the triple combination of prexigebersen,

decitabine and venetoclax to test the safety of this treatment combination. Pending safety review, the dosing of the triplet combination

will continue as planned.

Development of new therapeutics for AML

can meet currently unmet needs for patients who have very few treatment options due to age, fitness or treatment-resistance of

advanced genetically unstable cells. Elderly patients unfit to receive a stem cell transplant or induction therapy face a likelihood

of relapse to a more resistant leukemia. Prexigebersen and DNAbilize® technology offer new hope for achieving remission

for fragile populations. We believe that the combination of prexigebersen with frontline chemotherapy can provide a way to treat

cancer without added toxicity so that the patient can remain under treatment long enough to reach complete remission.

PREXIGEBERSEN-A

Data supports a prominent role of Grb2

in the progression of solid tumors, and overexpression of Grb2 has been associated with chemosensitivity, poor prognosis and advanced

disease in several malignancies including gynecologic malignancies.

Indications for Solid Tumors (e.g.,

Ovary, Endometrium)

Ovarian cancer is one of the most common

type of gynecologic malignancies, with 50% of all cases occurring in women older than 63 years. It is the fifth most frequent

cause of cancer death in women. In the U.S., 21,750 new cases of and 13,940 deaths from ovarian cancer were expected in 2020.

Around 70% of patients diagnosed with ovarian cancer will have a recurrence. Recurrent ovarian cancer is treatable but rarely

curable. The average duration of survival after recurrence of ovarian cancer is less than 2 years. The 5-year survival rate for

patients with recurrent ovarian cancer following standard salvage chemotherapy treatment is less than 10%. Given the poor outcomes

of treatment for ovarian cancer, novel drug treatments are urgently needed.

Endometrial cancer is the most common gynecologic

malignancy in the U.S. In the U.S., 65,620 new cases of and 12,590 deaths from endometrial cancer were expected in 2020. The majority

of cases are diagnosed at an early stage and are amenable to treatment with surgery alone. However, approximately 50% of advanced

stage endometrial cancers will recur. Recurrent endometrial cancer is incurable with currently available standard therapies. The

median survival for patients with recurrent endometrial carcinoma hardly exceeds 12 months. Novel drug treatments for recurrent

endometrial carcinoma are urgently needed.

Development and Treatment for ovarian

and endometrial cancer

Grb2 may be a novel potential therapeutic

target for ovarian and endometrial cancer, and prexigebersen-A may provide clinical benefit against these gynecologic malignancies.

Preclinical experiments were conducted in collaboration with leaders in the field of ovarian cancer at MD Anderson. Results of

the preclinical study were published in the scientific journal Oncotarget in July 2020. Prexigebersen-A effectively penetrated

ovarian tumors and decreased target Grb2 protein level in preclinical ovarian tumor models. Prexigebersen-A was demonstrated to

reduce tumor burden both as a monotherapy and in combination with paclitaxel, a therapy commonly used to treat patients with advanced

ovarian or endometrial cancer. In late 2019, we filed an IND application to initiate a Phase 1 clinical trial of prexigebersen-A

in patients with advanced or recurrent solid tumors. This trial is expected to commence after the IND has been cleared by the

FDA, which we currently anticipate being in 2021, at several leading cancer centers and will evaluate the safety of prexigebersen-A

in these patients. Assuming positive Phase 1 results, we expect that we would advance to a Phase 1b clinical trial of prexigebersen-A

in combination with paclitaxel in patients with recurrent ovarian or endometrial tumors.

Indications for Triple Negative Breast

Cancer (TNBC) and Inflammatory Breast Cancer (IBC)

TNBC and IBC - Background and Common

Treatments. Approximately 15 to 20% of breast cancers fall into the category of triple-negative. TNBC tumors do not express

estrogen receptors, progesterone receptors, and low human epidermal growth factor receptor 2 (HER2). These negative indicators

mean that the growth of the cancer is not supported by the hormones estrogen and progesterone, or by the presence of HER2 receptors.

Therefore, TNBC does not respond to hormonal therapy or therapies that target HER2 receptors. In addition, TNBC tumors are very

aggressive. IBC is a rare and very aggressive type of breast cancer that accounts for 2 to 5% of all breast cancers. A lack of

targeted treatments for these types of breast cancer has led to development of new therapeutics currently in clinical trials.

Overexpression of receptor tyrosine kinases has been reported for TNBC and IBC. Since Grb2 is vital in the cancer signaling of

receptor tyrosine kinases, the Company and collaborators at MD Anderson are interested in developing prexigebersen-A as a potential

treatment for TNBC and IBC.

BP1002

BP1002, also known by its scientific name

as Liposomal Bcl-2, is our second liposome delivered antisense drug candidate. BP1002 is intended to target the lymphoma, CLL

and certain solid tumor markets. We believe that BP1002 has the potential to treat 40 to 60% of solid tumors.

Bcl-2 is a protein that is involved in

regulating apoptosis, or programmed cell death. Apoptosis is a physiologic mechanism of cell turnover by which cells actively

commit suicide in response to aberrant external signals. Over-expression of Bcl-2 prevents the induction of apoptosis in response

to cellular insults such as treatment with chemotherapeutic agents. Bcl-2 is over-expressed in more than 90% of follicular lymphoma

(FL) due to a chromosomal rearrangement and is the key factor in the initiation of this malignancy. Bcl-2 was also found to contribute

to the pathophysiology of other lymphomas, such as CLL, mantle cell lymphoma, Waldenströms macroglobulinemia and double-hit

diffused large B-cell lymphoma, all of which are subtypes of non-Hodgkin’s lymphoma (NHL).

Non-Hodgkin’s Lymphoma - Background

and Common Treatments. Lymphoma can start anywhere in the body where lymph tissue is found. The major sites of lymph tissue

are lymph nodes, bone marrow, spleen, thymus, adenoids and tonsils and the digestive tract. NHL is a term used for many different

types of lymphoma that share some common characteristics. In the U.S., approximately 77,240 new cases of and 19,940 deaths from

NHL were expected in 2020 (Figure 7). Approximately 40% of NHLs are indolent lymphomas and approximately 60% are more aggressive

lymphomas. Indolent lymphomas grow and spread slowly. Some indolent lymphomas might not need to be treated right away but can

be monitored closely instead. On the other hand, aggressive lymphomas usually need to be treated right away, as they grow and

can spread quickly to other parts of the lymph system or to other parts of the body, such as the liver, brain or bone marrow.

Figure 7. Basic statistics of Non-Hodgkin’s

Lymphoma

BP1002 - Development and Treatment for

lymphoma. On December 22, 2014, we announced that we initiated development of BP1002 as a treatment for refractory/relapsed

patients with NHL (including CLL, mantle cell lymphoma, Waldenströms macroglobulinemia, diffused large B-cell lymphoma, peripheral

T-cell lymphoma, cutaneous T-cell lymphoma, and marginal zone lymphoma) and Hodgkin’s lymphoma.

Therapies that directly and specifically

block or inhibit protein synthesis of Bcl-2 could be transformative for NHL. Previous attempts at a Bcl-2 antisense by Genta Inc.

and ProNAi failed to show an improvement in remission or overall survival rates. The Genta antisense was a phosphorothioate DNA

with dose-limiting toxicity and it also did not have a lipid delivery mechanism to aid in prevention of clearance by the liver,

reducing the levels of antisense reaching diseased cells. The ProNAi antisense was administered with an anionic, pH-tunable liposome.

The drug was tolerable but its low response rate in DLBCL patients in a Phase 2 study prompted the company to discontinue further

clinical development. We believe that BP1002 overcomes the failures of previous antisense attempts at inhibiting Bcl-2. With BP1002,

more drug substance can reach the lymphoma cells so that the cancer cells can be treated with a safe and therapeutically relevant

dose. The small molecule Bcl-2 inhibitor venetoclax was approved by the FDA in June 2018 for the treatment of patients with

CLL and SLL who have received at least one prior therapy. In May 2019, the FDA approved venetoclax in combination with obinutuzumab

for the treatment of adult CLL and SLL patients with previously untreated disease. However, treatment with venetoclax can lead

to the development of drug resistance, resulting in disease recurrence. One of the proposed mechanisms of venetoclax resistance

is an acquired mutation in Bcl-2, which reduces venetoclax’s ability to bind and inhibit Bcl-2. Because BP1002 activity

is based on blocking the Bcl-2 messenger RNA and BP1002 targets Bcl-2 at a site different from venetoclax, we expect BP1002 to

overcome such venetoclax resistance mechanism and be an effective approach for patients who have relapsed from venetoclax. We

believe BP1002 provides a new tool for cancer treatment for not just lymphomas, but also many cancers for which Bcl-2 expression

is driving cell survival. The introduction of a new, non-toxic, and specific Bcl-2 inhibitor could be a major advance in cancer

therapeutics.

On November 21, 2019 we announced

that the FDA cleared an IND application for BP1002. An initial Phase 1 clinical trial will evaluate the ability of BP1002 to treat

refractory/relapsed lymphoma and CLL patients. The Phase 1 clinical trial is being conducted at several leading cancer centers,

including MD Anderson, the Georgia Cancer Center and the Sarah Cannon Research Institute and is now open for enrollment. Initially,

a total of six evaluable patients are scheduled to be treated with BP1002 monotherapy in a standard 3+3 design, with a starting

dose of 20 mg/m2. The approved treatment cycle is two doses per week over four weeks, resulting in eight doses administered

over twenty-eight days.

BP1003

BP1003 is our third

liposome delivered antisense drug candidate. BP1003 is a DNAbilize® RNAi nanoparticle containing antisense DNA

targeting STAT3, whose elevated expression/activity is associated with a poorer survival outcome for patients with solid tumors,

including those of gastric cancer, lung cancer, hepatic cancer, osteosarcoma, prostate cancer and pancreatic adenocarcinoma (PDAC).

We believe that a therapeutic that shuts down the STAT3 protein can have significant clinical impact for solid tumors that have

elevated expression/activity of STAT3.

Our lead indication for BP1003 is pancreatic

cancer due to the severity of this disease and the lack of effective, life-extending treatments. PDAC is a cancer of the exocrine

cells of the pancreas. In the U.S. in 2020, approximately 57,600 people were diagnosed with PDAC, and approximately 47,050 (82%)

died from the disease. It is estimated that less than 10% of PDAC patients survive beyond 5 years, and it is projected that by

2030, PDAC will become the second most lethal cancer behind lung cancer. Treatment of the disease is hampered by the location

of the pancreas, which is difficult to reach with conventional therapies and the fibrotic nature of the tumors, which protects

them from penetration by chemotherapeutics. We believe a novel and unconventional therapeutic is needed to overcome these barriers

to treatment.

While competition for therapeutics that

target the STAT3 pathway exist, the competition for specific STAT3 inhibitors is very small. Many peptides designed to bind to

STAT3 suffered from poor intrinsic pharmacokinetic properties, including poor cellular permeability and lack of stability in vivo,

which curtailed their further development. Even second-generation peptidomimetics have failed to overcome these limitations. Most

compounds under development target the pathway upstream of STAT3, such as the JAK2 kinase. However, lack of efficacy of the JAK2

kinase inhibitors was observed in PDAC clinical studies. Ionis Pharmaceuticals, Inc. has developed an antisense DNA-based

STAT3 inhibitor called IONIS-STAT3-2.5Rx. It is being evaluated in clinical trials by AstraZeneca under the name AZD9150 for solid

tumors and NHL. However, due to the toxicity of the DNA chemistry, thrombocytopenia continues to limit the systemic delivery and

efficacy of such compounds for the treatment of cancer. We believe BP1003 avoids these complications.

We hypothesized that the natural lipid

delivery vesicle would have unique characteristics that would allow for penetration of the fibrotic stroma to reach the PDAC cells.

An abstract of the preclinical study was presented in the 2019 American Association for Cancer Research Annual Meeting. Our preclinical

work demonstrated that BP1003 was successful in crossing the scar tissue matrix and delivering antisense drug into the tumor tissue.

Subsequent studies evaluating the combination of BP1003 with gemcitabine, a standard of care for PDAC patients with metastatic

disease, suggest that the regimen has synergistic anti-tumor effects. We expect to complete several IND enabling studies of BP1003

in 2021. If those studies are successful, our goal is to file an IND in late 2021 for the first-in-humans Phase 1 study of BP1003

in patients with refractory, metastatic solid tumors. Assuming positive Phase 1 results, we expect that we would advance to a

Phase 1b clinical trial of BP1003 in combination with gemcitabine in patients with refractory metastatic pancreatic cancer.

We believe that the excellent safety profile

of the DNAbilize® chemistry, the novel lipid formula that allows for penetration of the tumor stroma, and the ability

to target a single protein with precision, makes BP1003 an ideal candidate for combination with approved treatments to extend

Source: SEC EDGAR (public domain) · 10-K for the period ended 2020-12-31, filed 2021-03-09 · accession 0001104659-21-033789

Filing HTML rendered to line-structured narrative text by the shipped reducer (datafeeds.edgar_fulltext.visible_text, keep_table_headers=True): scripts and inline-XBRL headers are dropped, and table content is reduced to its short label cells — numeric table data is not rendered and is therefore not counted. The same rendering is used for every year, so a year-over-year comparison is like for like.

The text is our rendering of the filing, not a facsimile: original pagination, typography and tables are not reproduced, and the numbers live in the financial statements (FA).

The outline locates item HEADINGS in this document. Only Items 1A and 7 have certified boundaries elsewhere in the terminal (the redline and the narrative-overlap number); every span here runs from one heading found to the next heading found.

How the outline was chosen. It is the longest chain of item headings that runs forward through both the document and the standard item order: 21 headings are on that chain and 15 further heading-shaped lines are not — the table-of-contents echo of every item, cross-references and exhibit-list mentions. Each entry's length is measured from its heading to the next heading on the chain.