Achilles Therapeutics plc (ACHL) experienced a significant surge in its share price on Thursday following the announcement of a strategic shift for the company. Achilles revealed plans to discontinue its TIL-based cNeT program, leading to the closure of its ongoing Phase I/IIa clinical trials, CHIRON and THETIS.
This decision stems from the company’s new focus on exploring collaborations with third parties who are developing alternative modalities for targeting clonal neoantigens in cancer treatment. These potential partnerships could involve collaborations centered around neoantigen vaccines, antibody-drug conjugates (ADCs), and TCR-T therapies.
To facilitate this strategic transition, Achilles has engaged BofA Securities as a financial advisor to explore value-maximizing strategies. These strategies could include acquisitions, mergers, or asset sales. However, the company emphasized that there is no guarantee of any transactions resulting from this process.
Dr. Iraj Ali, CEO of Achilles Therapeutics, explained that while their data demonstrates the significance of clonal neoantigens as targets and shows some clinical activity, the studies in lung cancer and melanoma have not met the company’s goals for commercial viability. Despite the discontinuation of the cNeT program, Dr. Ali reiterated the company’s commitment to developing effective treatments for cancer patients and creating long-term value for its shareholders.
As part of this strategic update, Achilles will implement cost-cutting measures, including a proposed workforce reduction. The company has initiated an employee consultation process in compliance with UK legislation. Despite these measures, Achilles plans to retain employees essential for supporting value-realization during its strategic review.
The news of the strategic shift and discontinuation of the cNeT program sent ACHL shares soaring. According to Benzinga Pro, Achilles shares were up by 36.1% at 96 cents. This significant increase reflects the market’s reaction to the company’s new direction and the potential for successful collaborations in the future.
