Shares tumble as Alligator slims, pushes lead drug

Swedish immuno-oncology firm Alligator Bioscience (STO: ATORX) has announced a major restructuring to prioritize its lead asset, mitazalimab.

Citing promising Phase II results for the drug in pancreatic cancer, the company will seek to accelerate the candidate’s progress. The shake-up will involve firing around 70% of staff and reducing operational costs by at least 65 million kronor ($5.7 million) annually.

The restructuring, which requires trade union consultations, will largely affect discovery and non-clinical operations. With a skeleton crew of 15, Alligator will concentrate on late-stage development and limited research related to mitazalimab.