Vical views options, as it discontinues development of antifungal VL-2397

In yet another disappointment for the company, US drug developer Vical (Nasdaq: VICL) has decided to discontinue the Phase II clinical trial of VL‑2397 that was initiated in the first quarter of 2018.

The decision was based on the company’s decision to conserve its cash resources while it pursues its strategic alternative review process, as well as low patient accrual rates. The Phase II clinical trial was evaluating VL-2397 as a potential first-line treatment for invasive aspergillosis in immunocompromised adults with acute leukemia or recipients of an allogeneic hematopoietic cell transplant.

Vical also plans to undertake a restructuring, including an appropriate reduction in staff. As a result, the company will incur a restructuring related charge in the first quarter of 2019. Vical shares climbed 9% in after-hours trading following the announcements.