– At the time of writing, no such final solution has been presented, but the board and the undersigned are working diligently on the issue, writes acting CEO Erik Magnusson in the Q1 report.
Arcede Pharma develops the drug candidate RCD405, a dual-action compound for the treatment of respiratory diseases such as chronic obstructive pulmonary disease (COPD). This dual-action mechanism, being able to both dilate 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 are characteristic of today's treatments.
After completing the toxicology program with RCD405 last fall, Arcede is now at the border between pre-clinical and clinical, where they are focusing on taking the candidate into phase I clinical development. Here, they have worked together with, among other things, 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 carried out by research groups at Lunds university and Karolinska Institutet in order 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 during induced airway inflammation, and after inducing contractions in tissue samples, it was 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 University of Rome Tor Vergata in Rome. Data indicate that the drug candidate provides concentration-dependent relaxation of human bronchial tissue. The results therefore look promising for future clinical trials, according to the company.
Working with financing
Before these studies can begin, Arcede needs to finance this development stage.
– However, initiating and conducting these clinical studies requires additional capital, which is why the main focus of the quarter has been on identifying and evaluating various financing solutions.
The company has not yet found a solution, but the quarterly report states that the work is continuing. After the capital raising in January, cash amounted to just over SEK 5,5 million at the end of the first quarter. Cash flow from operations during the period amounted to approximately SEK -1 million, while the change in working capital amounted to SEK -1,5 million.
– The board and the undersigned are working diligently on financing to enable continued development of RCD405 under the company's direction.
Looking for a new CEO
In parallel with this, a new CEO is also being sought who can drive the project forward, after the previous CEO Mia Lundblad has chosen to move on to a more research-oriented position outside the company. CFO Erik Magnusson now works as acting CEO together with the Chairman of the Board Ingemar Kihlstrom to resolve the CEO issue.
– Work on a permanent solution to the CEO issue, which is linked to the financing issue, continues and here too we are hopeful of being able to find a solution, writes Erik Magnusson in the quarterly report.
