Ascelia Pharma AB (publ) (ticker: ACE), a biotech focused on improving the life of people living with rare cancer conditions, today announced a significant organizational reduction following the early August announcement that a re-evaluation of SPARKLE images is required for reaching headline results of the pivotal study with the liver imaging candidate drug Orviglance®. This immediate action has been taken to reduce costs.
As a key step to reach the ambition to complete the re-evaluation with existing funding, Ascelia Pharma needs to focus resources on this task. This means that progress on the regulatory filing and launch preparations are not the primary focus and that a significant reduction of the organization is required. The reorganization means that the Ascelia Pharma team will now consist of 13 employees, with the skills and commitment focused on completing the re-evaluation of SPARKLE images and reaching headline results, while maintaining the ability to ramp-up in all functional areas in the future. This means unfortunately that 12 employees will leave the company.
As part of these organizational changes, a full-time CFO position will not be required, and Déspina Georgiadou will therefore leave Ascelia Pharma. The duties of the CFO will be assumed by the Deputy CEO, Julie Waras Brogren.
As previously communicated, an update on the timelines and financial implications of the re-evaluation of the SPARKLE images will be announced in mid-September.
“This is a very difficult decision for us to take. The dedication and ambition that we have all shared have defined Ascelia Pharma, and it is therefore very regrettable that many of our valued colleagues must leave the company. Unfortunately, these steps are necessary to pursue our ambition to reach SPARKLE headline results with our existing funding. I want to thank all Ascelia Pharma colleagues for their invaluable work and contributions in creating and shaping our company,” said Magnus Corfitzen, CEO of Ascelia Pharma.
“Our confidence in Orviglance is unchanged, and we continue to be dedicated to making Orviglance available for cancer patients with kidney impairment,” he continued.