Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) opted out of the collaboration with OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI). The latter based out of Seattle and the exit in partnership took place after giving out $23 million. The two entities won’t be together anymore in developing drug custirsen for fighting out late stage occurrences of cancer.
The company has taken further steps in trimming the length and size of the current trial. An imminent setback seems on the cards for OGXI with this purported exit. However, the company has shared outright that it has barged into a deal with Lincoln Park Capital Fund to sell off a quota of shares worth $2 million. Further, it has agreed upon selling shares worth $16 million more in the next couple of years. Moreover, the company has plans to cut down its size and the duration it expected to devote to the trial. Trimming its base, cutting down on duration, selling off shares and growing smaller are the thoughts that OncoGenex look forward to implement, over the years.
OncoGenex Eyes Cost Cuts
OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI) is slated to be carrying out a study for Phase III lung cancer. There are costs involved and the anticipated duration now looks large enough! The company may just cut down the duration, ponder on reducing the costs and may just wrap up the study shortly. The company has suddenly reduced enrolled projects from an estimated 1100 to 700, at present. Midway in 2015, OncoGenex expects to carry out a futility analysis of the study.
Why Teva Broke The Tie-Up?
A month or two back, OncoGenex executed a phase of lease termination, so as to cut on lower overheads and rent payments. If Phase III trials are successful, the company expects to notch up $20 million! Teva decided to go ahead and cut on losses after custirsen trials flopped; hence, it broke the pact with OncoGenex.