4SC AG is navigating the European regulatory landscape for its drug candidate, Resminostat, while addressing financial challenges. The company's Q2 2024 earnings call highlighted both strategic advancements and ongoing financial constraints.
Regulatory Progress in Europe
4SC AG announced that it has filed a marketing authorization application (MAA) with the European Medicines Agency (EMA) for Resminostat in the treatment of advanced-stage cutaneous T-cell lymphoma (CTCL). This submission, filed in February 2024, represents a significant step toward potential commercialization in the European Union. The company received questions from the EMA in the second quarter and plans to address these issues with the intention of refiling the submission in the last quarter of 2024.
Resminostat has also received orphan drug designation in Switzerland, complementing its existing designations in the EU and the United States. Orphan drug designation provides certain benefits, including market exclusivity and reduced regulatory fees.
Clinical Trial Data
Positive data from the RESMAIN study supports the MAA. The study demonstrated that Resminostat significantly improved progression-free survival (PFS) in advanced-stage CTCL. Specifically, the median PFS was 8.3 months for patients treated with Resminostat compared to 4.2 months for those receiving placebo. This represents a clinically meaningful improvement and underscores the potential of Resminostat to address an unmet need in CTCL treatment.
The RESMAIN study also indicated improvements in total progression-free survival and time to next treatment, further supporting the drug's clinical efficacy.
Commercialization Strategy
To prepare for potential market entry in the EU, 4SC AG has engaged a global investment bank to evaluate commercial options and is in discussions with potential partners with a strong EU presence. The company is also assessing market entry and pricing strategies, engaging with third-party contractors and reimbursement agencies to validate pricing assumptions.
Financial Overview
Despite the clinical and regulatory progress, 4SC AG faces financial headwinds. The company reported a loss of just below EUR4 million in the first half of 2024. Revenues were EUR182,000. Operating costs were reduced by 18%, and personnel expenses decreased by 15% due to staff reductions. The company's monthly cash usage remains high at EUR649,000.
As of the earnings call, 4SC AG had between EUR4.4 million and EUR5 million in the bank, with an expected cash runway into the first quarter of 2025.
US Regulatory Path
4SC AG has decided not to pursue further registration of Resminostat in the United States based on feedback from the FDA. This decision limits the drug's potential market reach. In Japan, 4SC AG's partner, Yakult Honsha, is preparing its filing with the PMDA, awaiting final data from the RESMAIN study's longer-term survival data, expected in the fourth quarter of 2024.
Safety Profile
Resminostat's side effects, including nausea, diarrhea, and vomiting, were noted during the earnings call. These adverse events could potentially impact patient experience and drug adoption.
