- Theratechnologies (TSX:TH) announced it will phase down its preclinical oncology research activities
- The company stated it will continue to prioritize its ongoing Phase 1 clinical trial of sudocetaxel zendusortide (TH1902), a novel peptide-drug conjugate (PDC), in patients with advanced ovarian cancer
- The company also explained that the phasing down of research activities aligns with this initiative to optimize its organizational cost structure to generate positive earnings
- Shares of Theratechnologies opened trading at C$1.74
Theratechnologies (TSX:TH) announced it will phase down its preclinical oncology research activities.
The Montreal-based biopharmaceutical company stated it will continue to prioritize its ongoing Phase 1 clinical trial of sudocetaxel zendusortide (TH1902), a novel peptide-drug conjugate (PDC), in patients with advanced ovarian cancer.
The company has been focusing on its commercial business and explained that the phasing down of research activities aligns with this initiative to optimize its organizational cost structure to generate positive earnings before interest, taxes, depreciation and amortization (EBITDA). These changes are expected to result in a restructuring charge of US$625,000 in cash charges related to severance and other expenses and around US$770,000 in non-cash charges. The company expects these charges to fully take effect this year.
The company plans to continue to share its accumulated preclinical data, including the presentation of two separate posters at the American Association for Cancer Research annual meeting, April 5-9 in San Diego, California, one of which features data from new PDCs.
Earlier this week, Theratechnologies announced the initiation of the next cohort of patients in Part 3 of its Phase 1 trial of TH1902, in which the first patient had already received treatment at a higher dose. The team has ramped up recruitment at the six trial sites across North America and more than 40 people with various types of cancer have been treated with TH1902.
“Our investment in the SORT1+ Technology platform over the past five years has generated important evidence on multiple peptide-drug conjugates with different payloads,” Theratechnologies’ president and CEO, Paul Lévesque, said in a news release. “Now that we have significantly advanced our preclinical program, we are well-positioned to leverage this wealth of data and insights to attract an oncology R&D partner.”
Theratechnologies Inc. is focused on developing therapies addressing unmet medical needs.
Shares of Theratechnologies (TSX:TH) opened trading at C$1.74.
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