MONTREAL - Theratechnologies (NASDAQ:THTX) Inc. (TSX: TH) (NASDAQ: THTX), a biopharmaceutical company, has announced a strategic change to reduce its preclinical oncology research efforts. The company will concentrate on its ongoing Phase 1 clinical trial of sudocetaxel zendusortide (TH1902), targeting advanced ovarian cancer patients.
President and CEO Paul Lévesque expressed pride in the research team's contributions to understanding advanced cancers. He noted the significant advancements made in the preclinical program, positioning the company to seek an R&D partner in oncology.
The decision to scale down research activities aligns with Theratechnologies' commercial focus and is expected to optimize its cost structure, aiming for positive Adjusted EBITDA. The company anticipates restructuring charges of approximately $625,000 in cash for severance and other expenses, and around $770,000 in non-cash charges, to be fully accounted for in 2024.
Sudocetaxel zendusortide, a sortilin receptor-targeting peptide-drug conjugate, is the first compound from the company's SORT1+ Technology™ platform. The U.S. FDA granted it Fast Track designation for treating sortilin-positive recurrent advanced solid tumors refractory to standard therapy. The ongoing Phase 1 trial has treated over 40 patients with various cancers, and recruitment has intensified across six North American sites.
Theratechnologies will present two posters at the American Association for Cancer Research (AACR) annual meeting on April 5-9 in San Diego, including new data from PDCs.
The SORT1+ Technology™ platform harnesses the sortilin receptor, associated with aggressive diseases and poor prognosis, and is expressed in a significant proportion of endometrial, ovarian, colorectal, triple-negative breast, and pancreatic cancers.
This move by Theratechnologies, based on a press release statement, reflects a strategic pivot towards commercialization and partnership opportunities, potentially impacting the company's future direction and financial health.
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