To ensure that crucial clinical milestones can be reached and to position the company well for the future, organizational changes will be made, states the company.

The Board of Directors has established a strategy focused on areas of opportunity for clinical success and to create shareholder value in the short to medium term. The company’s resources will primarily be focused on the ongoing phase I/IIa study Tumorad-01. The aim is to generate results from the phase I part of the study using existing cash, which will support decisions on the continued clinical development and start of the phase IIa part of the study.

Internal preclinical discovery activities will cease

The focus on the Tumorad program results in that internal preclinical discovery activities will cease. This is expected to lead to significantly reduced costs and financial space to ensure results that can support decisions on the continued clinical development and prepare for the next phase of the Tumorad program.

It is of course regrettable that the measures decided on include staff reductions, but it is a natural consequence of the company being in a new phase and that we choose to focus our resources on areas where we see the greatest potential in the near future.

“Spago Nanomedical is in a new phase with full focus on the development of our candidate drug against cancer, 177Lu-SN201. The plan established is crucial to advance and accelerate the development of our leading Tumorad program. Following the recent recommendation of the independent Data Monitoring Committee (DMC) to continue as per protocol with the inclusion of patients with different tumor types, we are now increasing the recruitment rate at two clinical sites and expect to be able to evaluate the next patient cohort after the end of the year,” says CEO Mats Hansen. “It is of course regrettable that the measures decided on include staff reductions, but it is a natural consequence of the company being in a new phase and that we choose to focus our resources on areas where we see the greatest potential in the near future. With the significant market potential and the growing interest in the radionuclide therapy area among both investors and pharmaceutical companies, I’m convinced that this priority is right.”