trending Market Intelligence /marketintelligence/en/news-insights/trending/svW5WRSAd87Vba6_B6WWVQ2 content esgSubNav
In This List

Aptevo halts development of drug for autoimmune diseases, cuts annual expenses

Blog

A Pharmaceutical Company Capitalizes on M&A Activity with Brokerage Research

Blog

2021 Year in Review: Highlighting Key Investment Banking Trends

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Global M&A By the Numbers: Q3 2021


Aptevo halts development of drug for autoimmune diseases, cuts annual expenses

Aptevo Therapeutics Inc. discontinued the development of its experimental drug for autoimmune diseases APVO210 after it failed in an early-stage study to meet the desired product profile for commercialization in the future.

The Seattle-based biotechnology company said the participants in the phase 1 trial showed an increasing concentration of anti-drug antibodies — an immune response by the human body against therapies that negates the effects of the drug — with repeated doses of APVO210, resulting in a varying impact on the drug levels in subjects' blood.

In addition, Aptevo said it plans to cut down its annual expenditures by implementing an expense reduction strategy.

Under the program, the company will streamline its research and development programs, reduce investment in certain programs, cut down legal, professional and consulting expenses, scale down lease space and reduce executive and board cash compensation.

The biotech company expects to bring down its annual cash expenses in the range of $24 million to $28 million in 2020 compared to the range of $36 million to $40 million for 2019.

President and CEO Marvin White said the company, in addition to the expense reduction plan, will evaluate other measures to bring down costs to increase operational efficiencies. He added that Aptevo's goal is to avoid any dilution to shareholders at current stock price levels.

Aptevo also plans to transfer its shares from the Nasdaq Global Market to the Nasdaq Capital Market. The move will give the company an additional 180 days, or until April 12, 2020 to regain compliance with the exchange's minimum bid price requirement.