Percheron Therapeutics (ASX:PER) has updated shareholders on its actions following the disappointing result in the Phase 2b trial of its avicursen (ATL1102) in non-ambulant boys with Duchenne muscular dystrophy.
"Almost three months ago, we wrote to you outlining the steps that the Board was taking to restore and rebuild the Company, and we provided some initial perspectives on the path forward. We thought it would now be timely to provide you with a follow-up communication, to summarise the progress that has been made and to provide you with additional clarity on the Company's near- and medium-term future objectives," said the board of directors.
The company said all operational activities at each of the participating trial sites have now been concluded. Study-related equipment, such as the MyoGrip and MyoPinch devices, will be returned to the vendors. Surplus study drug, and study materials such as patient diaries, are for the most part being destroyed at site, unless there is a strong rationale to recover them for future use.
"A significant proportion of the Company's contractual agreements with vendors have been terminated, and associated financial commitments have been paid," said the board.
The company's board said it has assessed what residual value may remain in ATL1102 and ATL1103.
"We do not propose to invest any material company funds in the further development of ATL1102. However, we will keep the program alive but dormant for at least the remainder of CY2025, so that we can opportunistically explore potential interest from investigators or partners. The drug is clearly biologically active, and it may be that further experimentation can provide useful general insights and perhaps even identify potential new uses for ATL1102. However, we do not believe that this represents a compelling opportunity for shareholders, and so any further research will need to be substantially funded and performed by external parties. We don't have a strong sense at this stage as to how much interest there will be, but we will make reasonable efforts to retain any value that we can out from the program," it said.
The company confirmed a significant down-sizing, "with a consequent decrease in people costs that will primarily take effect from the June quarter of FY2025 and onwards."
"It has been difficult to farewell valued colleagues, but the Board considers it imperative that the Company conserve every dollar possible going forward. To this end, and as previously communicated, the non-executive directors have deferred certain Board fees, and the CEO has volunteered to defer 50% of his salary."
Percheron said its confidential negotiations with an international pharmaceutical company to in-license a new drug development program continue.
"The asset is 'clinic ready', which means that we expect that the Company could re-enter clinical trials by early CY2026. This is critical, because it is primarily the prospect and attainment of clinical milestones and clinical data that drives enterprise value in a biotech company. We have therefore sought to prioritise opportunities that allow us to return to the clinic as swiftly as possible," it said.
