Avigen has already secured one funding source for its Parkinson’s disease program and is actively exploring additional options to fund its other AAV development activities.
The decision to fund AAV development through external sources will significantly reduce Avigen’s operating expenses beginning this quarter. These savings will help to preserve Avigen’s cash for the development and commercialization of its internal preclinical programs in neuropathic pain and the acquisition or in-license of later-stage clinical products.
“For more than a year, we have been assembling a strong management team with outstanding experience in small molecules and biologics and are now positioned to redirect our resources from viral-based gene therapy to fully commit to more traditional drug development,” said Dr Kenneth Chahine, Avigen’s president and CEO.
“We believe that focusing our existing resources on traditional pharmaceuticals offers a greater potential to increase shareholder value than staying the course and investing our existing capital in viral-based gene therapy programs.”