Histogen Inc (NASDAQ:HSTO) seeks to terminate the collaboration agreement with Amerimmune and retake control of the COVID-19 development program.
- Histogen believes that Amerimmune has failed to meet its R&D responsibilities.
- Amerimmune signed up to work with Histogen to develop pan-caspase inhibitor emricasan in COVID-19 in October 2020.
- Histogen said Amerimmune is "required to use commercially reasonable efforts to lead the development activities for emricasan" in COVID-19.
- Histogen provided notice of material breach concerning its claims before filing an arbitration demand earlier this month. In demand, Histogen is seeking a declaratory judgment that Amerimmune has materially breached the agreement and, as such, it can terminate the deal.
- Histogen expects a Phase 2 clinical trial to start in 2H of 2022. Amerimmune and Histogen presented topline data from a phase 1 clinical trial of emricasan in mild symptomatic COVID-19 patients in June. The study found emricasan to be safe and well-tolerated.
- Related: Histogen Shares Additional Emricasan Data From COVID-19 Study.
- The Company reported cash and cash equivalents of $18.7 million, sufficient to meet Histogen's anticipated cash needs into Q2 of 2023.
- Price Action: HSTO shares are up 0.55% at $0.24 during the market session on the last check Friday.
