Arcede Pharma has focused in recent years on the development of its drug candidate RCD405, which aims to treat chronic obstructive pulmonary disease (COPD). The candidate differs from existing treatments through a combined mechanism of action, which both dilates the airways and reduces inflammation. The hope has been that this will lead to a more effective treatment for COPD patients, with a more favorable side effect profile compared to current treatment regimens.
RCD405 has undergone extensive preclinical studies with promising results and the next step has been to initiate clinical studies. However, taking that step requires financial muscle that the company does not currently have, as cash at the end of the first quarter amounted to just over SEK 5,5 million.
Worked hard to find financing
In the latest quarterly report, the acting CEO stated Erik Magnusson that the company actively worked to find financial solutions, but that it had not been able to find any. According to the company, it had simply not been able to generate sufficient interest from current and external investors to continue the investments. The board has therefore assessed that there is no other alternative than to place the company in voluntary liquidation.
– It is a challenging situation for the company and its shareholders, but this is the only reasonable way to avoid bankruptcy, says the chairman of the board Ingemar Kihlstrom.
Decisions at an extraordinary general meeting
The proposal is conditional on a decision at an extraordinary general meeting, to be held in the second half of July 2024, where shareholders will have the opportunity to vote on the board's proposal. In connection with this, the board also proposes a delisting of the company's shares from Spotlight Stock MarketThe preliminary assessment is that the possible distribution to shareholders in connection with the liquidation will amount to a maximum of SEK 1 million.