AlloVir Halts Clinical Trials and Explores Strategic Alternatives

by Warren Seah

AlloVir, a leading cell-therapy company in the clinical stage, has recently announced the suspension of three of its late-stage clinical trials. This decision comes in response to recommendations from independent data monitors. As part of their strategic evaluation, the company is exploring various alternatives, including a potential sale.

“We will immediately shift our focus to preserve our substantial remaining capital, review our pipeline, and assess strategic options,” said AlloVir’s Chief Executive, Diana Brainard.

The potential strategic alternatives being considered by AlloVir include a merger, sale, divestiture of assets, licensing, or other strategic transactions.

According to the latest financial report as of September 30th, AlloVir has cash, cash equivalents, and short-term investments totaling $213.3 million. With a market value of approximately $266 million as of the end of trading on Thursday, the company has a strong financial position.

AlloVir had been conducting three Phase 3 clinical trials using posoleucel, an investigational off-the-shelf multi-virus-specific T cell therapy. These trials aimed to evaluate the efficacy of posoleucel in preventing clinically significant infections or diseases caused by multiple viruses. Additionally, the therapy was being tested for virus-associated hemorrhagic cystitis treatment and adenovirus treatment following allogeneic hematopoietic cell transplant.

The decision to stop each respective trial was made after three independent data safety monitoring boards reviewed the data and concluded that the studies were unlikely to meet their primary endpoint. Notably, AlloVir reassured that no safety concerns were raised by any of the boards.

“While we are disappointed by the unexpected outcome of these trials, we are encouraged by the apparent safety profile of posoleucel,” added Brainard.

Shares of AlloVir have been temporarily halted in trading ahead of this news.

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