Oxford Cannabinoid Technologies Holdings PLC (LSE:OCTP, OTCQB:OCTHF) cited “continuing market uncertainty and an increasingly challenging macro-economic outlook” for its decision to review its budget.
The net effect will be the temporary delay of a phase I trial of OCT130401, the second of four programmes it is working on; however, the move will push out the group’s cash runway from April to the fourth quarter of next year.
A first-in-human evaluation of the company's lead programme, OCT461201, remains “on track and on budget”, kicking off next January with interim results expected in April.
"The re-allocation measures that the company has announced are both forward-looking and precautionary, reflecting the duty we have to our stakeholders, and the board's commitment to the delivery of our current programmes,” said chairman Julie Pomeroy.
“These steps are prudent and ensure that OCTP is best placed for long-term success.”
In the same announcement, OCTP said that finance director Karen Lowe is stepping down to concentrate on non-executive roles and work in consultancy.
The drug group is developing prescription cannabinoid medicines targeting the multi-billion dollar pain market.