CombiGene implements cost savings
CombiGene is ending its epilepsy program to focus entirely on the COZY pain project for chronic pain treatment. Meanwhile, a cost reduction program is being implemented that is expected to result in net savings of approximately SEK 57 million up to and including Q2 2026.
– We want to use our existing cash to increase the company’s value as effectively as possible. We believe we can do this by focusing on what we consider to be CombiGene’s absolute core competence, says CEO Peter Ekolind.
Gene therapy company CombiGene is developing the pain program COZY in collaboration with the Danish biotech company Zyneyro. The program includes the peptide treatment COZY01 and the gene therapy COZY02 for the potential treatment of severe chronic pain. CG01, a gene therapy for the treatment of severe drug-resistant focal epilepsy, previously out-licensed to U.S based Spark Therapeutics, is also in the pipeline.
Full focus on the pain program
The company has now announced a strategic evaluation of its portfolio, focusing all its R&D investments on the COZY program, with a strong emphasis on the gene therapy asset COZY2. Thus, the CG01 program will now be terminated. The decision is based on generated preclinical data – including data from the collaboration with Spark and the company’s own internally generated data – and the COZY program.
However, CEO Peter Ekolind emphasizes that they will still consider all possibilities for out-licensing and commercialisation of existing assets and new potential pipeline assets. According to the company, the current cash position will be sufficient until at least the second quarter of 2026. At the end of the second quarter 2024, the company’s cash amounted to SEK 83.6 million, while cash flow for the first half of the year amounted to SEK –17.8 million.
In a press release, CEO Peter Ekolind states:
“The fact that we are now ending the preclinical development of our epilepsy project is a decision based on a balanced assessment of biomedical results, patent situation, capital needs, and the competitive situation associated with market opportunities. We will opportunistically seek potential strategic collaborations, but we no longer see this project as a high priority in our operations. We want to use our existing cash to increase the company’s value as effectively as possible. We believe we can do this by focusing on what we consider to be CombiGene’s absolute core competence.”
Cutting down on spending
In parallel with this, CombiGene has also initiated a cost reduction programme that entails a 45 per cent reduction in the number of employees and external consultants and a reduction in investments in core business projects. CombiGene hopes to save up to approximately SEK 57 million by Q2 2026 by these measures.
The company will also return and terminate the license for epilepsy products for dogs and cats previously issued to the wholly owned subsidiary Panion Animal Health.
The company notes that the value of the item “shares in subsidiaries” in the parent company is written down by SEK 14 million, with no group effect. In the group, the goodwill value regarding CG01 is written down by 11 million SEK. The company intends to convene an extraordinary general meeting shortly.
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