Percheron Therapeutics Ltd has moved swiftly to secure a partner for its phase IIb clinical trial of ATL1102 in Duchenne muscular dystrophy, generating more than 50 leads at the JP Morgan Healthcare Conference this year.
The company plans to submit initial non-binding proposals to one or more potential partners by the end of February, under confidentiality.
PER says it expects to move to the due diligence phase once commercial terms can be agreed upon with a focus on leveraging Percheron’s existing strengths in rare diseases, which include early clinical and near-to-market late-stage opportunities.
Selecting next clinical candidate
“After the disappointing outcome of the ATL1102 DMD study, it was clear to us that the company would need to accelerate its efforts to acquire a new program,” Percheron CEO Dr James Garner said.
“We stepped up our outreach efforts immediately after the trial result and have been working vigorously since then.
“In particular, the JP Morgan Healthcare Conference, which we had originally arranged to attend in order to out-license ATL1102, provided an excellent forum to identify new leads.
“We spoke to more than 50 companies about programs that we could bring into Percheron, which identified some extremely promising opportunities.
“We are moving forward as fast as possible on the more exciting candidates and are aiming to submit initial proposals by the end of February.
“Whether a new asset sits alongside ATL1102 in our portfolio or replaces it remains to be determined; however, we are certain that a new narrative is needed to attract investors back to the company.
“In addition, we are discussing several more substantial strategic partnering models with a variety of investors and other companies.
“We are confident that the lead opportunities we are looking at have the potential to present a very attractive story for investors.”
Pursuing shareholder value
Percheron is also investigating several broader strategic partnering opportunities in addition to reviewing development opportunities, which could include substantial changes to PER’s business model.
The board says its priority is to identify pathways to restore the company’s value rapidly and as cost-effectively as possible with a focus on clinical or late-stage preclinical programs that have potential to translate into near-term value opportunities.
PER will also continue to evaluate the value of its ATL1102 and ATL1103 assets, making a final decision on the program’s future by the end of March.