Pulmatrix Closes Study Of Fungal Lung Infection Treatment, Explores Strategic Alternatives

By Ben Glickman

Pulmatrix will close a study of a potential treatment for a fungal lung infection as it prioritizes limiting cash burn and pursuing strategic alternatives.

The biopharmaceutical company said that Cipla, its partner in developing the treatment, would take responsibility for the development of PUR1900 for Allergic Bronchopulmonary Aspergillosis, a fungal infection in the lungs, under an amendment to the two companies' agreement.

Cipla and Pulmatrix agreed to stop enrollment in a Phase 2b study of PUR1900 and close the study.

Pulmatrix will receive 2% royalties on sales of Pulmazole in the Cipla territory, which is defined under the agreement as the area in which Cipla can exclusively develop and commercialize PUR1900.

Pulmatrix's Chief Executive Ted Raad said stopping the study and implementing other cost-saving initiatives was expected to extend the company's cash runway to the first quarter of 2026.

The company will pursue strategic alternatives as it winds down the study as part of a focus on maximizing shareholder value.

As of Dec. 31, 2023, the company had cash on hand of about $19 million.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

January 08, 2024 09:38 ET (14:38 GMT)

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