Agenus Announces Strategic Realignment: Focus on Core Programs, Significant Cost Reductions, and Layoffs

Updated

Strategic Realignment:
Agenus has announced a strategic realignment focusing on its lead botensilimab/balstilimab (BOT/BAL) program, which has shown clinical activity in various cancers including microsatellite stable colorectal cancer34.

Cost Reductions:
The company aims to reduce annual expenditures by 60% and achieve a cash burn of $100 million for FY 2025. This includes staff reductions, operational adjustments, and transitioning biologics CMC capabilities to a fee-for-service model3.

Layoffs:
The restructuring involves layoffs, though the exact number of affected employees is not specified in the latest announcement. Previous restructuring efforts in 2023 included a 25% workforce reduction2.

Financing:
Agenus has secured a $22 million mortgage secured by real estate assets to support the restructuring3.

BOT/BAL Program:
The company is prioritizing the development of BOT/BAL, which has demonstrated robust clinical activity in microsatellite stable colorectal cancer (MSS CRC), non-small cell lung cancer (NSCLC), pancreatic cancer, sarcoma, and other difficult-to-treat cancers34.

Regulatory Plans:
Agenus plans to engage with the FDA in the second half of 2024 and aims to commence the submission of a Biologics License Application under the accelerated approval provision for BOT/BAL in refractory MSS CRC NLM4.

Commercial Readiness:
The company is advancing critical commercial launch readiness activities, including ensuring quality and availability of BOT/BAL supply and hiring a seasoned commercial leadership team4.

Sources:

2. https://www.biopharmadive.com/news/agenus-restructuring-biotech-layoffs-/691608/

3. https://www.stocktitan.net/news/AGEN/agenus-announces-strategic-realignment-to-focus-on-core-programs-and-wg4hmyd4569g.html

4. https://www.biospace.com/agenus-reports-first-quarter-2024-results