Last month's late-stage trial failures of AlloVir's lead asset have resulted in drastic moves, with the company now revealing it is cutting 95% of its workforce.
The biotech shared the bad news about the trials in late December, announcing that it was going to discontinue three phase 3 studies involving posoleucel, an investigational off-the-shelf multi-virus-specific T-cell therapy. The decision came following separate, pre-planned independent Data Safety Monitoring Boards futility analyses that concluded that the studies were unlikely to meet their primary endpoints.
AlloVir believed that posoleucel had the potential to transform care for transplant patients, as well as others at high risk for viral infections, by reducing or preventing disease morbidity and improving patient outcomes. The three studies were exploring posoleucel for prevention of clinically significant infections or diseases by multiple viruses; treatment of virus-associated hemorrhagic cystitis; and treatment of adenovirus — all following allogeneic hematopoietic cell transplant.
Initially, AlloVir said it would be reviewing strategic alternatives which could include a merger, sale, divestiture of assets, licensing or other strategic transaction. Then, come the new year, an SEC filing revealed that the biotech would be cutting the workforce by approximately 95% in order to reduce costs and preserve capital.
According to AlloVir, the cuts will take place primarily during the first quarter of 2024 and should be mostly completed by April 15, 2024.
