Published on 14 Aug 2023 on Zacks via Yahoo Finance

Atreca (BCEL) Suspends Lead Drug Evaluation, Stock Falls 37%

Atreca, Inc.’s BCEL shares plunged about 37% on Aug 11, 2023, after the company reported structural changes in its business in the second-quarter earnings release, which failed to meet investors’ expectations. The company stated expenses reduction to extend cash runway as the reason for these structural changes.

As part of its restructuring efforts, Atreca announced suspending the developmental activities of ATRC-101, which was being evaluated for several cancer indications. ATRC-101, a monoclonal antibody being developed as a non-antibody drug conjugate (ADC), was the company’s only pipeline candidate in the clinical development phase.

In the absence of a marketed product, the discontinuation of the only clinical phase candidate is a major setback for the company as all other candidates currently under development are in the pre-clinical phase. BCEL reported looking for partnership opportunities to out-license the development of ATRC-101.