ALRN - Aileron off 38% on plans to explore sale after setback for cancer candidate

Aileron Therapeutics ( NASDAQ: ALRN ) shed ~38% on Tuesday after the company disclosed plans to explore strategic alternatives, including a sale, and said that its Phase 1b study for chemoprotective agent ALRN-6924 failed in patients with p53-mutated breast cancer.

The open-label study was designed to evaluate ALRN-6924 in patients with breast cancer receiving neoadjuvant or adjuvant treatment with the "TAC" chemotherapy regimen.

According to initial data, patients in the study have experienced severe neutropenia (Grade 4) and alopecia, which reflected its primary and secondary endpoints, respectively.

Based on the findings, the company has decided to terminate the study program and drop ALRN-6924 from its pipeline.

Additionally, Aileron ( ALRN ) announced that it is currently evaluating a range of strategic alternatives, including an acquisition, a merger, a sale of assets, or other transactions.

The company has also decided to cut its remaining staff count to three from nine full-time employees in the coming weeks. The retained employees are expected to assist in implementing the strategic alternatives review process.

Aileron ( ALRN ) shares have plunged ~83% over the past 12 months. The company announced a 1-for-20 reverse stock split in November to regain compliance with Nasdaq's minimum bid price requirement.

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