Cash-strapped Viracta Therapeutics is continuing to reduce its options in order to stay afloat. Less than two months after announcing its second round of layoffs, the precision oncology biotech has closed its phase 2 lymphoma trial in order to “explore strategic alternatives.”
In early November, Viracta said it would be waving goodbye to 42% of its remaining staff in order to keep money flowing to its lead program, a combination of the HDAC inhibitor nanatinostat and the antiviral valganciclovir.
In August, the biotech posted phase 2 data for the combo, dubbed nana-val, in 21 patients with peripheral T-cell lymphoma (PTCL) whose cancer was Epstein-Barr virus (EBV)-positive. That study saw overall and complete response rates (ORR/CRR) of 33% and 19%, respectively. In the 10 second-line patients, the ORR was 60% and the CRR was 30%. The readout was enough for Viracta to go all-in on the PTCL opportunity, halting work on developing nana-val for solid tumors and laying off around 23% of the company’s employees at that time.
But with the $21.1 million the biotech ended September with expected to run out by March 2025, the pressure remained to find more cash. In a Dec. 26 release, the company said that in order to “maximize its cash runway” as it “conducts its review of strategic alternatives,” Viracta’s board has decided to close its phase 2 trial of nana-val in relapsed/refractory EBV+ lymphomas. The decision is not related to any safety findings, the company stressed. Viracta had previously touted the trial as “potentially registrational."
“As we continue to look for ways to conserve resources and maximize value for the company, we made the very difficult decision to close the NAVAL-1 study while the board undertakes its strategic review,” CEO Mark Rothera explained in the Dec. 26 release.
For now, the company is continuing to assess the asset in a phase 1b/2 trial for patients with recurrent or metastatic EBV nasopharyngeal carcinoma, according to the release.