ESSA Pharma Inc. (NASDAQ: EPIX) has announced the discontinuation of its clinical trials for masofaniten, a drug being evaluated for the treatment of metastatic castration-resistant prostate cancer (mCRPC). The decision follows an interim analysis of a Phase 2 study combining masofaniten with enzalutamide, which indicated a low likelihood of meeting the primary endpoint.
Clinical Trial Termination
The Phase 2 trial assessed masofaniten in combination with enzalutamide versus enzalutamide alone in patients with mCRPC who had not previously received second-generation antiandrogens. According to David Parkinson, MD, President and CEO of ESSA, the interim analysis revealed that the enzalutamide monotherapy arm exhibited a much higher rate of PSA90 response than anticipated based on historical data. Furthermore, the combination of masofaniten and enzalutamide did not demonstrate a clear efficacy benefit over enzalutamide alone. The futility analysis led to the conclusion that the study was unlikely to achieve its primary endpoint, prompting the termination of all masofaniten clinical trials.
Strategic Review and Financial Update
Following the clinical setback, ESSA Pharma has initiated a comprehensive strategic review to explore options for maximizing shareholder value. These options may include a merger, acquisition, asset sale, or the pursuit of new product development opportunities. The company also provided a financial update, reporting a net loss of $28.5 million for the fiscal year ended September 30, 2024, compared to a net loss of $26.6 million for the previous year. As of September 30, 2024, ESSA had cash reserves and short-term investments of $126.8 million.
Impact and Future Directions
The termination of masofaniten's clinical development represents a significant shift for ESSA Pharma. The company is now focused on evaluating strategic alternatives and reducing costs. The decision to halt the trials was based on a lack of clear efficacy benefit and a higher-than-expected response in the control arm, highlighting the challenges in developing new therapies for mCRPC. ESSA Pharma has also terminated the License Agreement to the Licensors, effective as of December 12, 2024. The company's future direction will depend on the outcome of its strategic review and its ability to identify new opportunities for growth and development.
