Apollomics Restructures Portfolio and Partnerships to Extend Cash Runway

Apollomics, a biotech company focused on oncology therapeutics, has announced significant changes to its portfolio and partnerships as part of a strategic effort to cut costs and extend its financial runway into 2026. The company's recent moves include terminating a partnership with TYG Oncology, reevaluating its lead candidate vebreltinib, and selling Asian rights to the drug.

Termination of TYG Oncology Partnership

In a cost-cutting measure, Apollomics has ended its collaboration with TYG Oncology, terminating a license agreement for the cancer vaccine TYG100, also known as APL-810. The partnership, which began in 2021, granted Apollomics regional rights to the immuno-oncology candidate. The decision to terminate the agreement was made in November 2024 but only recently disclosed in the company's fourth-quarter results.

Vebreltinib Development Challenges

Apollomics has faced difficulties in the development of its lead candidate, vebreltinib, a c-MET inhibitor. The company narrowed its focus to non-small cell lung cancer patients with MET amplification, confirmed by central FISH testing. However, this approach has led to slow enrollment, with only six patients meeting the new criteria over nine months.

The reliance on FISH testing, which is not standard in the patient population, has prompted Apollomics to reconsider its development strategy for vebreltinib. The company is now evaluating alternatives for the drug's development in this indication, as the current approach limits both recruitment and commercial potential.

Strategic Partnership with LaunXP Biomedical

To bolster its financial position, Apollomics has sold the rights to vebreltinib in most of Asia to Taiwan's LaunXP Biomedical. The deal, announced earlier this week, includes a $10 million upfront payment, which will more than double Apollomics' cash reserves. This strategic move is expected to extend the company's cash runway into the first quarter of 2026.

As part of the agreement, LaunXP Biomedical will study vebreltinib in combination with an EGFR inhibitor, potentially opening new avenues for the drug's development.

Company Restructuring and Financial Outlook

Apollomics' recent actions are part of a broader restructuring effort that began in 2024. The company has prioritized the development of vebreltinib and uproleselan while making significant cuts to its pipeline and workforce. By the end of 2024, Apollomics had reduced its staff to just 13 full-time employees.

The company's cash position stood at $9.8 million at the end of 2024, a figure that will be significantly improved by the recent deal with LaunXP Biomedical. These strategic moves reflect Apollomics' commitment to extending its operational timeline and focusing on its most promising assets in a challenging biotech market.