Faron Pharmaceuticals Ltd (LON:FARN) is exploring options for ingredients manufacturing of Traumakine, its lead drug candidate.
The drug company received a contract termination notice from German producer Rentschler Biopharma, which was providing the active pharmaceutical ingredient (API) manufacturing.
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The decision was related to the “significant” upgrade to the manufacturing process that would be required to receive approval by the European and US authorities to produce the drug.
Faron said this termination has no impact on the ongoing clinical advice process, as it focuses on a clinical study structure for Traumakine, which is used to treat acute respiratory distress.
Studies in the development of Traumakine revealed it requires a design to avoid administering in combination with corticosteroids, which Faron has already submitted for feedback.
Once the design is approved, the AIM-listed firm will carry on discussions for third party funding, as announced last week.
Shares were down 2.79% to 97.7p at noon.