- New York-based biopharma Kadmon's recent attempts to slash operational expenses are paying off according to the company, which lowered the amount of capital it expected to burn over the next year by more than $9 million.
- In a November 9 statement, the company said staff cuts, an amended credit repayment plan, and optimizing strategies for both sales of its hepatitis C portfolio and negotiations with payers contributed to the lowered expectations.
- The company also gave updates on its pipeline. It will present Phase 2 trial data for one lead candidate, tesevatinib, at the International Association for the Study of Lung Cancer's annual World Conference in December. The treatment is being tested for non-small cell lung cancer (NSCLC) in that trial, as well as polycystic kidney disease and reccurent glioblastoma in respective Phase 2a and exploratory studies.
Kadmon has had a hard time getting its footing in the industry. The company's initial public offering earlier this year underperformed, netting just $66 million after all was said and done. Kadmon currently has $55 million in cash and cash equivalents, but a $29 million debt load due in 2018 and 2019 looms.
The company renegotiated the terms to one credit agreement, however, which should spare it some expenses in the near term. Monthly payments of $380,000 related to a $35 million secured term loan have been deferred until August of next year.
Not surprisingly, the company expects R&D costs to increase as it pushes its lead candidates through clinical phases and toward commercialization.
"We expect that our research and development and selling, general and administrative expenses will continue to increase as we develop our product candidates," Kadmon wrote in its most recent 10-Q form filed with the Securities and Exchange Commission.
Kadmon talked about the status of other pipeline assets as well, such as KD025, a drug that targets the ROCK2 cell signaling enzyme. Enrollment is currently underway for three Phase 2 studies testing the treatment's effectiveness in combating autoimmune, chronic graft-versus-host and fibrotic diseases.
Moreover, Kadmon plans to file an abbreviated New Drug Application for its Wilson's disease drug KD034 in December. The company could begin marketing the drug as early as 2017, according to the Wednesday statement.
"With the initiation of three new clinical trials in the third quarter of 2016, we continue to make progress towards developing innovative therapies for unmet medical needs, including in oncology, autoimmunity, fibrosis and genetic diseases," CEO Harlan W. Waksal said in the statement.