Arovella Therapeutics Ltd (ASX:ALA) is shifting focus to its invariant Natural Killer T (iNKT) cell platform following a strategic review of its development pipeline.
At the same time, the company will close its Perth-based research and development facility, ceasing expenditure on the legacy OroMist platform, which is expected to result in savings of $1.5 million per annum based on historical costs.
Arovella intends to focus entirely on the development of its iNKT cell therapy platform, which has significant potential to generate allogeneic cell therapies that target blood cancers and solid tumours.
Clear agenda
Arovella chief executive officer and managing director Dr Michael Baker said: “The strategic review and resulting focus on our iNKT platform sets out a clear agenda for the future growth of Arovella.
"It will enable all staff and resources to be focused on bringing a potential off-the-shelf cell therapy to market that can target both blood cancers and solid tumours.
“I want to thank everyone at the Perth facility whose dedication and expertise made the commercialisation of our insomnia drug, ZolpiMist, possible.”
The closure of the facility will incur one-off restructuring costs of less than $300,000 in the 2023 financial year.
ZolpiMist review
Arovella is also reviewing its contractual arrangements related to ZolpiMist, a first-in-class oral spray of zolpidem tartrate to treat short-term insomnia. ZolpiMist is approved by the FDA and the TGA and is marketed in the US.
The company recently announced it will collaborate with Imugene to combine the iNKT cell platform and Imugene’s onCARlytics platform, to test against solid tumours.
The biotechnology company is expanding its DKK1-peptide targeting technology licensed from MD Anderson and used in conjunction with its iNKT cell therapy platform.