RhoVac provides a status update and investigates a potentially accelerated repayment of the convertible loan
Jun 30, 2022
RhoVac AB ("RhoVac"), (June 30th 2022) a Swedish company active in cancer immunotherapy, was forced on 29 May 2022 to announce that the company's phase IIb study in prostate cancer, BRaVac, despite the previous positive results related to the substance, failed to show that RV001 (onilcamotide) was superior to placebo in preventing progression in patients with biochemical recurrence (an increase in PSA) after curative intent treatment. Further investigations of study data have been undertaken, but so far nothing of substance has been identified that has a justifiable risk/benefit ratio to warrant further studies. The review of data will continue during the month of July. In parallel, the Board is examining the possibilities for a potential merger between RhoVac and a potential other company, an option that might yield the best return on the company's assets. The alternative is probably a solvent liquidation of the company if further studies are not deemed justified. Irrespective of options in the end, the company is examining the possibilities for an accelerated repayment of the convertible loan with a first down payment already later this summer.
At the end of May, the company implemented a contingency plan that focuses on cost minimisation, while the company conducts further analyses of the results, in order to facilitate Board recommendations on the company’s future. The status is as follows:
- An immediate halt to the long-term follow-up of the BRaVac study has been implemented at the same time as RhoVac has terminated the agreement with the CRO that handled the study. Furthermore, the company's staff, including consultants, has been reduced to save costs. The company's development manager, Steffen Wad Jorgensen, has been given notice of contract termination. Steffen Wad Jorgensen will continue to work for the company during his notice period of three months.
- The company has conducted analyses of the primary study results in order to analyse whether a sub-group of patients responded better than the group as a whole. To date, these analyses have not yielded substantial results to that effect. The analyses will continue, especially with a focus on relating efficacy to different types of immune types, so-called HLA types. This relies on data that will be available only in July.
- RhoVac is investigating the possibility of a merger, a so-called “reverse merger”, through which another company would benefit from RhoVac's stock exchange platform, assets and certain key personnel. This could have potential value, and RhoVac will return with information on this matter no later than at the end of July.
- If neither the further analysis of study data nor a possible merger would justify continued operation of the company, the alternative is probably a solvent liquidation of RhoVac, through which the company repays all debts, realizes its assets, and repays the remainder of the cash to shareholders.
RhoVac will convene an Extraordinary General Meeting (EGM), which will be held in September 2022 at the latest. At this time, RhoVac expects to have a decision basis for all available alternatives, as above, and the EGM is assessed to be able to decide on the future of the company supported by Board’s recommendations. Irrespectively, RhoVac investigates the possibilities for an accelerated repayment of the convertible loan with a first down payment later this summer.
This disclosure contains information that RhoVac is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 30-06-2022 08:27 CET.