Pulmatrix Stops PUR1900 Phase 2B Study Patient Enrollment And Closing Study, In Agreement With Partner Cipla, To Preserve Cash And Facilitate Strategic Alternatives
Portfolio Pulse from Benzinga Newsdesk
Pulmatrix has halted patient enrollment and is closing its Phase 2B study of PUR1900, in agreement with partner Cipla. Cipla will now take full responsibility for PUR1900's development, targeting markets with high unmet need and a quicker approval process, and will pay Pulmatrix a 2% royalty on net sales. Pulmatrix aims to reduce cash burn and explore strategic alternatives, leveraging its pipeline, iSPERSE™ technology, and its cash reserves of approximately $19 million as of the end of 2023.
January 08, 2024 | 2:04 pm
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Pulmatrix is ceasing enrollment in the PUR1900 Phase 2B study and closing it, with Cipla taking over development. Pulmatrix will focus on strategic alternatives and cash preservation, with a 2% royalty agreement from Cipla's net sales of PUR1900.
The halting of the PUR1900 study by Pulmatrix is a significant strategic shift, indicating a pivot in the company's focus towards cost reduction and exploration of strategic alternatives. The royalty agreement with Cipla provides a potential future revenue stream, but the immediate impact on the stock is likely neutral as the market digests the implications of the halted study and the company's new direction. The importance is high due to the potential change in the company's trajectory, and confidence in this analysis is strong given the clear information provided.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100