LUND, Sweden, April 7, 2020 /PRNewswire/ -- Alligator Bioscience (Nasdaq Stockholm: ATORX) , announced today that the company has decided to increase its focus on the clinical development portfolio. In order to secure value for its clinical drug candidates, Alligator will reduce investments in non-clinical activities. This includes certain staff reductions. Alligator will retain its innovation platform and discovery research to secure the long-term development of the company. These measures will result in an annual cost reduction of over SEK 80 million, allowing the company to be financed for another 18 months.
There are also cost savings undertaken in the clinical programs without affecting value generation. As a consequence of the new strategy, Alligator will today give notice of employee reductions impacting 12 positions, corresponding to over 20 percent of the company's personnel, and the company will initiate negotiations with union representatives.
"We will now concentrate Alligator's resources on the projects where they create the greatest value near term. This means that our available funds support development of our clinical programs without losing speed. We believe it is of greatest importance for the long-term value of the company to keep our cutting-edge expertise in drug discovery", said Per Norlén, CEO of Alligator Bioscience.
The ongoing covid-19 pandemic has imposed a major burden on our health care sector and as a consequence the ability to run clinical studies is temporarily limited. The clinical studies for ATOR-1015 and ATOR-1017 continue even if patient recruitment is expected to be temporarily affected. It is currently too early to estimate how it affects our study completion timelines.
The cost reduction measures announced, together with a potentially slower recruitment to the clinical studies, is estimated to reduce the company's annual running cost by over 35 percent, from approximately SEK 230 million to less than SEK 150 million.
Alligator's clinical development portfolio consists of four different drug candidates, all for the treatment of metastasized cancer. Mitazalimab has completed Phase I trials and is ready to enter Phase II clinical studies. ATOR-1015 and ATOR-1017 are in ongoing phase I dose-finding studies. AC101, which is run by the Chinese company Shanghai Henlius, is also in clinical phase I. As earlier communicated, ALG.APV-527 is on hold awaiting a partner to take it into clinical development. ATOR-1144 and other early research projects will be packaged for out-licensing.
The change announced today in operations is expected to be fully implemented by the third quarter of 2020.
Alligator will host a conference call today at 2:00 p.m. CEST for investors, analysts and media, where CEO Per Norlén will present and comment on the change in operations and the future development of the company. The conference will be held in English. All necessary information to listen-in and ask questions are available on the following link:
This information is such information Alligator Bioscience AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 9:00 a.m. CEST on 7 April 2020.
About Alligator Bioscience
Alligator Bioscience AB is a clinical-stage biotechnology company developing tumor-directed immuno-oncology antibody drugs. Alligator's growing pipeline includes six lead clinical and preclinical drug candidates: mitazalimab (ADC-1013), ATOR-1015, ATOR-1017, ALG.APV-527 (co-developed with Aptevo Therapeutics Inc.), ATOR-1144 and AC101 (in clinical development by Shanghai Henlius Biotech Inc.). Alligator's shares are listed on Nasdaq Stockholm (ATORX). The Company is headquartered in Lund, Sweden, and has approximately 55 employees.
For more information, please visit www.alligatorbioscience.com.
For further information, please contact:
Per Norlén, CEO
E-mail: [email protected]
Cecilia Hofvander, Director Investor Relations & Communications
E-mail: [email protected]
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Alligator Bioscience increases focus on clinical development
SOURCE Alligator Bioscience