12:31 PM EDT, 03/22/2024 (MT Newswires) -- Theratechnologies Inc. ( THTX ) on Friday said it will phase down its preclinical oncology research activities. The company will prioritize its Phase 1 clinical trial of sudocetaxel zendusortide (TH1902), a novel peptide-drug conjugate (PDC), in patients with advanced ovarian cancer.

"I am very proud of our exceptional research team, whose work has contributed greatly to the scientific discourse and understanding of advanced cancers," said Paul Levesque, President and CEO. "Our investment in the SORT1+ Technology platform over the past five years has generated important evidence on multiple peptide-drug conjugates with different payloads. Now that we have significantly advanced our preclinical program, we are well-positioned to leverage this wealth of data and insights to attract an oncology R&D partner."

The company will continue to share accumulated preclinical data, including the presentation of two separate posters at the American Association for Cancer Research (AACR) annual meeting, to be held April 5-9 in San Diego, Calif., one of which features data from new PDCs.

The phasing down of research activities is aligned with Theratechnologies' ( THTX ) focus on its commercial business and will optimize its organizational cost structure. The changes are expected to result in a restructuring charge of US$625,000 in cash charges related to severance and other expenses and US$770,000 in non-cash charges.

The company anticipates all charges to be fully taken during 2024.

Price: 1.74, Change: +0.04, Percent Change: +2.35