Alligator announces cost reduction program

Swedish immuno-oncology company Alligator Bioscience (Nasdaq Stockholm: ATORX) saw its shares close up 2.4% at 1.13 kronor yesterday, after it announced plans to adjust the size of its organization to reflect the end of the resource-intensive OPTIMIZE-1 Phase II clinical trial with its lead asset mitazalimab, and the need for the company to prioritize its pre-clinical and early-stage assets.

Alligator noted that the planned restructuring remains subject to negotiation with the relevant trade unions but would result in a reduction of apround20-25% of the current workforce, which once implemented is expected to reduce operational cash burn with 20 million kronor ($1.9 million) annually.

“While Alligator has recently delivered outstanding Phase II clinical data for mitazalimab in 1st line pancreatic cancer, we need to remain laser focused on our objective to deliver outstanding returns to our stakeholders and to maximize the chances of developing innovative therapies in an ever more challenging Biotech environment," said Alligator chief executive Søren Bregenholt.