Erytech says it is halting its lead Graspa program

Franco-American biopharma Erytech Pharma (Nasdaq: ERYP) revealed Monday that the company will no longer be developing its lead candidate Graspa (eryaspase), an l-asparaginase encapsulated inside donor-derived red blood cells (RBCs). Market reaction was sanguine, with the company’s shares closing up 1.6% at $0.65.

The decision follows an earlier disappointment with the drug, when Erytech stopped further plans to pursue a Biologics License Application (BLA) submission seeking an approval for Graspa in hypersensitive acute lymphoblastic leukemia (ALL) after feedback from the US Food and Drug Administration (FDA).

“After the setback of our failed Phase III trial in pancreatic cancer, we have sharply reduced our costs and focused our resources on our most promising preclinical programs, in particular our red-blood cell derived extracellular vesicles (EV) platform, a platform for which we see increasingly interesting opportunities,” commented chief executive Gil Beyen, adding: “The pursuit of strategic options for Erytech is continuing and valuable options are under evaluation.”