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:
https://tv.streamfabriken.com/2020-04-07-alligator-bioscience-press-conference
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
Phone: +46-46-540-82-00
E-mail: per.norlen@alligatorbioscience.com
Cecilia Hofvander, Director Investor
Relations & Communications
Phone +46-46-540-82-06
E-mail: cecilia.hofvander@alligatorbioscience.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/alligator-bioscience/r/alligator-bioscience-increases-focus-on-clinical-development,c3082842
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Alligator Bioscience
increases focus on clinical development
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