Pulmatrix Closes Study Of Fungal Lung Infection Treatment, Explores Strategic Alternatives
08 January 2024 - 2:53PM
Dow Jones News
By Ben Glickman
Pulmatrix will close a study of a potential treatment for a
fungal lung infection as it prioritizes limiting cash burn and
pursuing strategic alternatives.
The biopharmaceutical company said that Cipla, its partner in
developing the treatment, would take responsibility for the
development of PUR1900 for Allergic Bronchopulmonary Aspergillosis,
a fungal infection in the lungs, under an amendment to the two
companies' agreement.
Cipla and Pulmatrix agreed to stop enrollment in a Phase 2b
study of PUR1900 and close the study.
Pulmatrix will receive 2% royalties on sales of Pulmazole in the
Cipla territory, which is defined under the agreement as the area
in which Cipla can exclusively develop and commercialize
PUR1900.
Pulmatrix's Chief Executive Ted Raad said stopping the study and
implementing other cost-saving initiatives was expected to extend
the company's cash runway to the first quarter of 2026.
The company will pursue strategic alternatives as it winds down
the study as part of a focus on maximizing shareholder value.
As of Dec. 31, 2023, the company had cash on hand of about $19
million.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
January 08, 2024 09:38 ET (14:38 GMT)
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