LONDON - Achilles Therapeutics PLC (NASDAQ: ACHL), a clinical-stage biopharmaceutical company, announced today that it is halting the development of its TIL-based cNeT therapy and closing the Phase I/IIa CHIRON and THETIS clinical trials. The decision comes after the therapy, aimed at treating lung cancer and melanoma, did not achieve commercial viability goals.
The company is shifting focus to explore partnerships with developers of alternative cancer treatment modalities, such as neoantigen vaccines, ADCs, and TCR-T therapies. Achilles Therapeutics has also engaged BofA Securities to advise on strategic financial options, potentially including mergers, acquisitions, or licensing deals.
Dr. Iraj Ali, CEO of Achilles, expressed gratitude to patients, investigators, employees, and shareholders for their support. Despite the discontinuation, the company remains committed to leveraging its assets and technology to develop effective treatments for cancer patients and to enhance shareholder value.
As part of its strategic shift, Achilles is consulting on workforce reductions in compliance with UK legislation and is implementing cost-cutting measures. The company is dedicated to supporting its employees during this transition and plans to retain essential staff for ongoing strategic review processes.
Achilles reported a cash position of $95.1 million as of June 30, 2024. The full data from the clinical trials will be presented at an upcoming forum. While the company is exploring strategic alternatives, there is no guarantee of any agreements or transactions resulting from this process.
Achilles Therapeutics specializes in AI-powered precision T cell therapies targeting clonal neoantigens, unique protein markers on cancer cells. The company had been conducting trials based on its proprietary technology and data from the TRACERx study, which provided insights into tumor evolution and immune evasion.
This news is based on a press release statement from Achilles Therapeutics PLC.
InvestingPro Insights
Achilles Therapeutics PLC (NASDAQ: ACHL) is at a critical juncture as it halts its TIL-based cNeT therapy trials and shifts its strategic focus. The company's financial health and market performance offer insights into its current position and future prospects.
InvestingPro data reveals a market capitalization of $29.17 million, reflecting the company's size in the biopharmaceutical industry. A significant metric for investors is the Price to Earnings (P/E) ratio, which currently stands at -0.45. This negative P/E ratio, along with an adjusted P/E ratio for the last twelve months as of Q2 2024 of -0.46, indicates that Achilles is not currently generating profits. Furthermore, the company's Return on Assets for the same period is -38.87%, underscoring the challenges it faces in generating returns on its investments.
Two InvestingPro Tips highlight Achilles Therapeutics' financial strategy and shareholder implications. First, the company holds more cash than debt on its balance sheet, which can provide some financial flexibility as it evaluates strategic options. Second, despite high shareholder yield being a positive sign, the company does not pay dividends, which may influence investment decisions for income-focused shareholders.
For investors considering Achilles Therapeutics, it is important to note that analysts do not expect the company to be profitable this year. Additionally, there are concerns about the company's cash burn rate and weak gross profit margins. Investors can find 6 additional InvestingPro Tips for Achilles Therapeutics that provide deeper analysis into the company's financials and operations at https://www.investing.com/pro/ACHL.
As Achilles Therapeutics navigates its strategic pivot, these financial metrics and InvestingPro Tips can help investors assess the company's current state and potential future direction.
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