Troubled Nordic Nanovector "exploring strategic options"

Reeling from the recent failure of its lead product in a pivotal trial, Nordic Nanovector has formally started a restructuring process and called in investment bank Carnegie to help explore its options.

The Norwegian biotech was hit hard in July when the PARADIGME study of Betalutin (¹⁷⁷Lu lilotomab satetraxetan) – an anti-CD37 antibody radionuclide conjugate being tested as a third-line therapy for patients with follicular lymphoma – was abandoned after being plagued with recruitment issues.

The study had been struggling to get over the finish line for years, starting to dose patients back in 2018, but on discontinuation had recruited just 109 subjects out of a target of 204.

The company hasn’t revealed the data from the study, but has said that the results so far have not been positive, with only a third of patients responding to the treatment and an average duration of the response of approximately six months.

Losing Betalutin left Nordic Nanovector with a clutch of earlier-stage anti-CD37 candidates, including follow-up radionuclide Humalutin, none of which have advanced into the clinic. It ended the second quarter with NOK 280 million (around $29 million) in cash reserves, down from NOK 356 million at the end of the first quarter.

"The decision to discontinue the PARADIGME study was extremely disappointing," said the company's chairman Jan Egberts in an update yesterday evening.

"As a result, we are now focused on achieving an outcome for the company that creates maximum value for shareholders," he added.

"We believe this should include exploring all strategic options and, as a leading financial advisor in the Nordic region, Carnegie is strongly positioned to help us achieve the best possible outcome for our shareholders and other stakeholders."

The company is due to report its full second-quarter results on 31 August, but said it will not make any further public comment on the strategic review until it has been completed or an announcement is warranted.

Shares in the company are currently in penny territory at €0.24, down from a 52-week high pf €3.83.