Eutilex CEO Kwon Byeong-se said he felt sorry for the recent fall of the company’s stock prices, adding that the latest suspension of a trial on a single pipeline unfairly made the entire pipelines’ potential undervalued.
Eutilex shares have been bearish in recent weeks. The stock price went down below 60,000 won ($50.51) for the first time on Tuesday and hit a new 52-week low at 52,400 won on Wednesday.
Kwon appeared to have come forward to explain about the halt of the clinical trial before things got worse.
“We internally checked the cause of the recent stock price downfall and confirmed that it was not related to our business operation,” Kwon said in a statement on Thursday, announcing the company’s stance on the discontinuation of the phase-1/2 trial on EBViNT Cell, a treatment for natural killer T (NK/T) cell lymphoma.
“The company’s potential value has not been reflected well in recent stock prices,” he said.
According to Kwon, Eutilex’ four critical pipelines related to T cell treatments are in progress stage by stage. Although the regulator ordered Eutilex to suspend the trial on the NK/T cell lymphoma treatment in Korea, the company was discussing with the Ministry of Food and Drug Safety to resume the trial, he said.
For a U.S. trial on EBViNT Cell, the company has selected a candidate for a contract manufacturing organization (CMO) and is now discussing clinching a deal. For a study in China, the company has completed the selection of a contract research organization (CRO) for a researcher-led clinical trial.
Eutilex has almost completed a phase-1 study on T cell therapy pipeline WTiNT Cell for solid cancer at the National Cancer Center, and a researcher-led trial on TERTiNT Cell, respectively.
The phase-1 test on WTiNT Cell is expected to end in the first half of 2020. The company said it has confirmed the safety of the investigational treatment in patients.
It has also picked a candidate CMO for U.S. trials on the two pipelines and is discussing for an agreement.
“We suspended only one trial on a single pipeline among Eutilex’ many trials. It does not mean the company suspended the entire platform of T cell treatments,” Kwon emphasized.
The company had no problem in preparing antibody pipeline EU101 to enter a trial in China and Korea, and discussing licensing-out deals for EU102 and EU103.
“Eutilex has more than 20 pipelines under three platforms. It is quite regrettable that the trial suspension made investors fail to see the real values of the company’s many other innovative pipelines,” Kwon said, adding that he would meet the expectations of investors and shareholders with handsome earnings.