Immune Pharma CEO Steps Down to Lead R&D in Restructuring, May Spin Off Oncology Unit
April 24, 2017
By Mark Terry, BioSpace.com Breaking News Staff
New York-based Immune Pharmaceuticals unveiled major corporate restructuring today. The goal is to prioritize and segregate its research and development programs to focus on inflammatory diseases and dermatology.
One part of the restructuring will be for the company’s chief executive officer, Daniel Teper, to switch over to heading its oncology business within its subsidiary Cytovia. There, Teper will pursue a potential spin-off of Cytovia into a stand-alone company independent of Immune.
Cytovia’s focus will be on the development and commercialization of immuno-oncology and hematology therapeutics. Its lead product is Ceplene, an immunotherapy currently in late-stage development in combination with low dose interleukin 2 (IL-2) for the remission maintenance of patients with acute myeloid leukemia (AML). In addition, it has azixa and crolibulin, both in Phase II trials, in immuno-oncology. And it has a bispecific antibody platform that is supported by collaborative partnerships.
“The proposed restructuring strategy recognizes that our two operating divisions have evolved into distinct business and investment opportunities,” Teper said in a statement. “The potential Cytovia spin-off will establish each division as a separate company with a focused strategy and will enable each company to enhance its business focus, better align its resources to achieve strategic priorities, target investors attracted to its unique business profile, and ultimately unlock significant value for both companies.”
Teper resigned immediately as chief executive officer of Immune to take on the role at Cytovia. He will remain on the company’s board.
The board, meanwhile, appointed Elliot Maza, as interim chief executive officer, effective immediately. Maza has served as a member of the board and chairman of the Audit Committee of the board since January 14, 2015. He has also acted as a consultant to the company from November 2015 to January 2015. He will resign from the Audit Committee, but will remain as a director.
Monica Luchi, executive vice president Global Drug Development and chief medical officer, will take on the role of president for Immune Pharmaceuticals Inflammatory Disease and Dermatology Division.
The company plans, under Maza and Luchi, to focus Immune’s business on immune-inflammation in general, and immune-dermatology in particular. Its core assets, bertilimumab, is a first-in-class human monoclonal antibody in Phase II trials in bullous pemphigoid and ulcerative colitis, with potential application for severe atopic dermatitis. It also plans to continue to develop a topical nano-cyclosporine for atopic dermatitis and moderate psoriasis.
The market didn’t take the news all that well. Immune is currently trading for $3.34. In premarket trading it dropped 9 percent today. Shares traded on April 20 for $4.59. Shares have been on a downward slide for some time. Shares traded on June 1, 2016 for $10.82.
The company seems to be emphasizing the advantages of a potential spin-off of Cytovia into a stand-alone company. In a statement, Immune said it “allows current Immune investors to benefit from two distinct investment opportunities through proportional receipt of shares in Cytovia; enables Cytovia to target new investors attracted to its specific oncology business profile and pursue distinct capital structures and capital allocation strategies; and aligns Cytovia’s resources with its stated goals and tailors its business strategy to best address opportunities within its target market of oncology.”
The company also indicates it has not filed its 10-K for 2016, but will as soon as it is practical.