Wednesday, September 28, 2022

UPDATE: Another biotech that went public in pandemic surge aims to weather bear market through R&D cutback

A bear market is showing no signs of decline with a French biotech feeling the heat of an IPO during the pandemic.

Nanobiotics, a French biotech focusing on new treatments for cancer, is cutting back on preclinical research and revising some of its ongoing studies, the company said in its first-quarter report late Wednesday. Nanobiotics said the reduction is intended to prioritize its flagship program for advanced head and neck squamous cell carcinoma.

Although the company reported that it is “reducing satellite office facilities,” a Nanobiotics spokesperson explained endpoint news This involves moving hybrid employees to a completely remote location instead of laying off employees.

President Laurent Levy said in a statement, “As we continue to witness an unprecedented downturn in capital markets, we are looking to adjust our cost structure, reduce expenses and focus our operating activities on building a major and neck franchise. are taking proactive steps.”

Investors appeared somewhat upset by the news, as $NBTX shares were down more than 8% in early trading Thursday.

Nanobiotics is relatively soon in front of regulators to try and activate its flagship program, dubbed NBTXR3, with radiotherapy. The FDA has said it will consider an expedited approval for the candidate, according to the biotech’s recalculation, and Nanobiotics says it will submit a prospective protocol and statistical analysis plan in the first quarter of next year.

Nanobiotics is taking some steps to make sure it gets the most out of its head and neck cancer drug. First and foremost, execs are reducing the amount of preclinical and discovery work, as well as optimizing their manufacturing infrastructure to match reduced production.

Then the Nanobiotics satellite office is saying the cut. A company spokesperson did not specify how many offices Nanoiobitx uses, and will no longer use, nor how many employees work at these facilities.

Finally, the biotech is revising an ongoing clinical trial for NBTXR3, increasing the follow-up time from 24 to 12 months. Researchers are studying whether the drug in elderly head and neck squamous cell carcinoma patients who are ineligible for cisplatin therapy, with final study data expected in the middle of next year.

All the moves represent a significant turnaround for a biotech that went public during the COVID-19 pandemic boom, pulling in $99 million in its December 2020 IPO. As of Thursday’s opening price of $5.33 per share, the biotech’s stock is down about 60% from its first price of $13.50. And like many other companies suffering a bear market this year, Nanobiotics is down massively since January: more than 37% in the red for 2022.

This article has been updated to include comment from a Nanobiotics spokesperson.

Nation World News Desk
Nation World News Desk
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