Key points:
- Kintara Therapeutics stock rallied 95.1% after pausing the breast cancer study.
- The move will save the biopharma company up to $3 million by the end of 2023.
- Investors cheered the move, as evidenced by the rally. So, what’s next?
The Kintara Therapeutics Inc (NASDAQ: KTRA) stock price rallied 95.1% after deciding to pause its REM-001 program in Cutaneous Metastatic Breast Cancer (CMBC) to conserve cash that could be used to support its other ongoing programs.
The biopharmaceutical company intends to save up to $3 million by the end of 2023 from pausing the project. It plans to use the money saved to advance its ongoing international registrational study for VAL-083 in glioblastoma (GBM).
Also read: Five Best Pharmaceutical Stocks To Watch In 2022.
Investors cheered the news indicating that the breast cancer program was not popular among shareholders compared to the glioblastoma program, which will now receive additional funding to see if it can achieve the crucial milestones needed on its path to commercialisation.
Kintara Therapeutics revealed that the decision to halt the REM-001 program was motivated by the desire to save much-needed cash in the current harsh economic conditions. In addition, the company noted that the lack of treatment options for patients with Cutaneous Metastatic Breast Cancer (CMBC) made the program quite attractive for future development.
The biopharma company also revealed that it was pursuing other funding sources for the 15-patient CMBC study, including grants, which it has applied for and are currently being reviewed by the potential funders.
Robert E. Hoffman, President and CEO of Kintara, stated: “Although this was a difficult decision, we believe saving approximately $3.0 million through calendar year 2023 is prudent given the current capital market conditions. We continue to look forward to announcing top-line data for VAL-083 in GBM from the international registrational GBM AGILE study around the end of calendar year 2023.”
Investors approved of the company’s rough decision, given that there is a possibility that it could win grant funding for CMBC, given the need for new treatment options for patients suffering from the disease.
Kintara also confirmed that it would announce the top-line results from its VAL-083 Glioblastoma study by the end of next year, which will be funded by the funds saved by pausing the CMBC program.
*This is not investment advice.
Kintara Therapeutics stock price.
The Kintara Therapeutics stock price surged 95.10% to trade at $0.1953, rising from Tuesday’s closing price of $0.1001.