TrovaGene Inc. (NASDAQ: TROV) Inks Research Collaboration with Nektar Therapeutics. (NASDAQ:NKTR)
TrovaGene Inc. (NASDAQ: TROV) is a potential bounce-back play as it continues to work on its candidate drugs, targeting various types of cancer. The company has turned to strategic partnerships to accelerate the development of clinical programs as part of an effort of reinvigorating growth prospects.
Nektar Strategic Partnership
The Clinical stage therapeutic company has since inked a strategic research agreement with Nektar Therapeutics. (NASDAQ: NKTR) Therapeutics. The two are joining forces to evaluate the efficacy of a combination of inhibitor onvansertib and topoisomerase inhibitor ONZEALD, as a novel treatment for colorectal cancer.
The two are to evaluate the antitumor activity as well as tolerability of the combined product in two mutant preclinical models of colorectal cancer. ONZEALD is Nektar’s topoisomerase, which seeks to enhance anticancer effects. The candidate drug has so far shown positive trial results. TrovaGene’s candidate drug onvansertib has also shown strong activity in suppressing tumors in preclinical models of colorectal cancer.
The strategic partnership, according to TrovaGene Chief Scientific Officer, Mark Erlanger, marks a key milestone in the advancement of the onvansertib clinical program. The executive expects clinical data generated from the trials to lead to an optimal treatment option.
“Working together with Nectar will enable us to very quickly assess the potential value of the onvansertib/ONZEALD combination and our collective goal of developing an innovative and targeted treatment regimen that may have application in other cancer types beyond CRC,” explained Mr. Erlanger.
TrovaGene is fresh from inking a $1.5 million equity investment deal. Institutional investor Lincoln Park Capital Fund has entered into a deal and agreed to purchase 196,104 of the company’s shares for $3.275. The investor also has prefunded warrants at a purchase price of $3.275 per warrant.
TrovaGene is to use net proceeds from the offering to advance Onvansertib clinical development programs part of the funds will also fund working capital.
Q1 Financial Results
The clinical stage company is fresh from reporting financial results for the first three months of the year, whereby it achieved significant milestones on its ongoing clinical programs. Operating expenses in the quarter were down by $0.7 million to $4.1 million, attributed to a decrease in SG&A expenditure and cost of revenues.
Net cash used in operating activities totaled $3.4 million up from $2.9 million reported the same quarter last year. The increase was because of an increase in costs in the development of Onvansertib. Research and development expenses were up by $0.8 million to $2.6 million due to outside service costs for clinical studies.
Amidst the flurry of positive developments, TrovaGene remains under immense bearish pressure given the underlying long-term bear trend. With the stock currently languishing at all-time lows, the company may have to serve groundbreaking catalysts to avert further slides in the market. For the stock to regain bullish momentum, it will have to rise and take out the $4.80 resistance level.