Home News Full focus on financing and new CEO for Arcede

Full focus on financing and new CEO for Arcede

Full focus on financing and new CEO for Arcede

Full focus on financing and new CEO for Arcede

22 May, 2024

Preparations for phase I are largely complete. What Arcede Pharma now needs to solve is financing the upcoming study and getting a permanent CEO in place.

– At the time of writing, no such final solution has been presented, but the Board of Directors and I are working insistently on the matter, acting CEO Erik Magnusson writes in the Q1 report.

Arcede Pharma is developing the drug candidate RCD405, a dual-action substance for the treatment of respiratory diseases such as chronic obstructive pulmonary disease (COPD). This dual-action mechanism, being able to both widen the airways and reduce inflammation, distinguishes the candidate from existing drugs.

The goal is to be able to offer a more effective treatment without the troublesome side effects that today’s treatments are characterized by.

After completing the toxicology program with RCD405 last autumn, Arcede is now in the borderland between preclinical and clinical, where the focus is on taking the candidate into phase I clinical development. Here, they have worked together with Iconovo to develop an inhalable formulation of RCD405.

Results published in Respiratory Research

In the preparatory work, further preclinical studies with the candidate have been conducted by research groups at Lund University and Karolinska Institutet to gain a deeper understanding of the mechanisms of action. The results of this work have been accepted for publication in the scientific journal Respiratory Research.

– In summary, the in vivo studies showed that RCD405 significantly inhibited several pro-inflammatory substances, says Arcede Pharma’s acting CEO Erik Magnusson.

RCD405 also reduced the recruitment of immune cells to the lungs in induced airway inflammation. Additionally, after inducing contractions in tissue samples, it could be seen that the candidate had a relaxing effect on the samples.

New results continue to validate the project

This effect was also observed in studies conducted at the Università degli studi di Roma Tor Vergata in Rome. Data indicate that the drug candidate provides a concentration-dependent relaxation of human bronchial tissue. According to the company, the results thus look promising for future clinical trials.

Working with financing

However, Arcede needs additional funding to initiate the studies.

– Initiating and conducting these clinical studies requires additional capital, which is why the main focus of the quarter was on identifying and evaluating different financing solutions.

The company has not yet found a solution, but it states in the quarterly report that the work is continuing. After the capital raise in January, cash amounted to just over SEK 5.5 million at the end of the first quarter. Cash flow from operating activities during the period amounted to approximately SEK -1 million, while the change in working capital amounted to SEK -1.5 million.

– The Board of Directors and myself are working insistently on the financing to enable the continued development of RCD405 under the company’s auspices.

Looking for a new CEO

In parallel with this, they are also looking for a new CEO who can continue the project, after former CEO Mia Lundblad moved on to a more research-oriented position outside the company. CFO Erik Magnusson is now acting CEO with Chairman of the Board Ingemar Kihlström to resolve the CEO issue.

– The work on finding a permanent CEO and solving the financing issue is continuing, and we are hopeful of being able to find a solution, writes Erik Magnusson in the quarterly report.

The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.

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