Alaunos Therapeutics ends key agreement and updates on financial condition

Published 10/10/2024, 19:08
Alaunos Therapeutics ends key agreement and updates on financial condition

Alaunos Therapeutics, Inc. (NASDAQ:TCRT), a pharmaceutical company, announced on Thursday the termination of a significant licensing agreement with Precigen (NASDAQ:PGEN), Inc. The original agreement, which was revised and restated on April 3, 2023, granted Alaunos the rights to develop Sleeping Beauty-transposed neoantigen T-cell receptors for solid tumor cancer treatment. The decision to end the agreement, effective October 4, 2024, aligns with Alaunos' strategic review and the upcoming expiration of the non-viral Sleeping Beauty gene transfer platform patent in 2026.

Despite this development, Alaunos is continuing to pursue intellectual property protection for its TCRs targeting mutations in KRAS, TP53, and EGFR, as well as its hunTR TCR discovery platform. The company is also exploring various strategic alternatives, such as mergers, acquisitions, asset sales, partnerships, or capital raises.

In addition to the licensing agreement update, Alaunos provided insights into its financial condition and operational progress. The company is advancing an internal small molecule oral obesity program, aiming to differentiate from current obesity treatments that typically involve hormonal manipulation. Alaunos has contracted a manufacturing organization to produce active pharmaceutical ingredients for this program.

Cost reductions have extended the company's cash runway into the first quarter of 2025. Alaunos plans to begin in vitro testing of its small molecule candidates in the fourth quarter of 2024, with in vivo efficacy studies anticipated in the first half of 2025, followed by nonclinical and IND-enabling activities. These plans are contingent on study outcomes and the company's ability to secure additional funding or partnerships.

In other recent news, Alaunos Therapeutics has implemented a 1-for-10 reverse stock split, wherein each set of ten shares of common stock will be consolidated into a single share. This decision, approved by the company's Board of Directors, was confirmed in a filing with the Securities and Exchange Commission. Trading on a split-adjusted basis is set to commence on The Nasdaq Stock Market, with Equiniti Trust Company acting as the exchange agent, providing shareholders with instructions on the exchange process.

In another development, Alaunos Therapeutics has made significant changes to its accounting structure. The company's Audit Committee approved the dismissal of RSM US LLP as its independent registered public accounting firm and appointed Cherry Bekaert LLP in its place. The reports from RSM for the fiscal years ending December 2023 and 2022 did not contain any adverse opinion or disclaimer of opinion.

InvestingPro Insights

Alaunos Therapeutics' recent strategic decisions and financial outlook can be further contextualized with insights from InvestingPro. The company's market capitalization stands at a modest $3.52 million, reflecting its current challenges. InvestingPro Tips highlight that Alaunos is "quickly burning through cash" and "analysts do not anticipate the company will be profitable this year," which aligns with the company's focus on extending its cash runway and exploring strategic alternatives.

The stock's performance has been notably weak, with InvestingPro data showing a 63.33% price decline over the past three months and an 86.38% drop over the past year. This downward trend is consistent with the company's strategic review and the termination of its licensing agreement with Precigen.

Despite these challenges, InvestingPro Tips indicate that Alaunos "holds more cash than debt on its balance sheet" and "liquid assets exceed short-term obligations," which could provide some financial flexibility as the company pursues its obesity treatment program and explores strategic options.

For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Alaunos Therapeutics, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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