Cash constraints are forcing Corvus Pharmaceuticals to clip the wings of its lead candidate. Rather than advance on multiple fronts, the biotech is focusing on cancers including T-cell lymphoma and holding off on starting a phase 1 trial in atopic dermatitis.
Corvus believes the candidate, ITK inhibitor CPI-818, has a future in multiple areas including lymphoma, solid tumors, autoimmunity and allergy. The belief is underpinned by evidence that ITK is involved in the differentiation of T helper cells, specifically by blocking Th2 and Th17 and skewing the mix toward Th1. Because Th1 cells kill tumors, and Th2 and Th17 drive autoimmune and allergic diseases, Corvus reckons the change in the mix of T helper cells can improve outcomes in a range of conditions.
The problem? Corvus ended last year with $42.3 million to its name and, with investors yet to buy into the idea, the ability to raise additional money is constrained. The biotech has responded to the situation by going all in on cancer. Talking to investors on a quarterly results conference call, Corvus CEO Richard Miller outlined the impact of the R&D rethink on the development of CPI-818 in atopic dermatitis.
“We have decided to pause this work. This will allow us to intensify our focus on T-cell lymphoma and cancer and conserve cash while we push forward with our R&D to further strengthen the foundation for use of ‘818 in immune diseases. We remain excited about the potential of ‘818 in atopic dermatitis. In an increasingly crowded space, we have a novel approach with many potential advantages,” Miller said.
Plans to start clinically validating those potential advantages by starting a phase 1 trial are on hold. The pullback from autoimmune work will allow Corvus to focus on developing CPI-818 in cancer, including potentially by running a randomized phase 3 trial that could support registration in T-cell lymphoma.
The biotech expects to burn through between $19 million and $22 million executing the slimmed-down strategy this year. That forecast, which at the midpoint represents a 24% reduction in spending versus 2022, would enable Corvus to end the year with at least $20 million in the bank and keep the lights on into 2024.
Meanwhile, another biotech reported a funding struggle that will impact programs. Mereo BioPharma will seek a partner to advance alvelestat into alpha-1-antitrypsin deficiency-associated lung disease. Last week, the company revealed that regulatory feedback had been received suggesting that the therapy could be brought to market on both sides of the Atlantic by running a single, global, phase 3 study in the indication.