Aravive Cuts 70 Percent of Staff, Halts All Clinical Trials
August 22, 2023
Rare Daily Staff
Aravive, a company developing therapies for rare cancers and fibrotic diseases, said it is terminating 70 percent of its workforce and halting all clinical trials after its lead experimental therapy batiraxcept in platinum-resistant ovarian cancer failed to meet its primary endpoint in a phase 3 clinical trial.
The company reported the decision in a filing with the U.S. Securities and Exchange Commission reporting its quarterly results.
The primary endpoint in the trial was progression-free survival in a pre-specified subset of patients naïve to prior bevacizumab treatment. The trial also did not show any difference between the two arms in the overall population (which included patients previously treated with bevacizumab). No new safety signals were identified.
Based on the efficacy results, the company said it has terminated the platinum-resistant ovarian cancer trial and program.
In an effort to preserve cash, Aravive has also terminated the phase 1b/phase 2 studies in clear cell renal cell cancer and pancreatic adenocarcinoma and will not continue either the renal or pancreatic programs unless it is able to raise additional capital.
Aravive said it is currently exploring various strategic alternatives, including strategic partners and financing opportunities, these strategic alternatives may not be successful in the next several weeks prior to its cash position getting to the point that it will need to pursue the winding down and dissolution of the company.
If the company does not raise capital or successfully engage a strategic partner in the next several weeks, it said it will be forced to cease operations, liquidate assets, and possibly seek bankruptcy protection or engage in a similar process.
Aravive estimates it will incur approximately $900,000 in costs resulting from severance payments and an additional $300,000 for previously accrued paid time off for the employees it is terminating.
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