Servier's Exit from Parkinson's Pact Triggers Restructuring at Oncodesign Precision Medicine

French biotech Oncodesign Precision Medicine (OPM) has announced significant cost-cutting measures following Servier's decision to terminate their Parkinson's disease collaboration. The move has forced OPM to make what CEO Philippe Genne calls "drastic choices" to navigate through a challenging period for the company and the broader biotech sector.

Financial Impact and Restructuring Efforts

OPM, which ended December with just 5.1 million euros ($5.6 million) in cash, had been anticipating a milestone payment from Servier this year. The loss of this potential income has had a severe impact on the company's 2025 budget, prompting immediate action to reduce expenses.

In January, OPM implemented a series of cost-saving measures:

• Five employees were made redundant
• CEO Philippe Genne and the chief scientific officer took 50% pay cuts
• The company hinted at "further planned savings on non-priority programs"

These steps are part of a broader strategy to adapt to what Genne described as "a significant attrition of investments in our field, particularly for listed companies."

OPM-201: From Promise to Pause

The catalyst for these changes was Servier's decision to exit a pact centered on OPM-201, a LRRK2 inhibitor for Parkinson's disease. Servier had taken the compound into a phase 1 trial in healthy volunteers in 2022 but chose to back out before the final results were published.

This isn't the first setback for OPM-201. The program originated from work funded by Ipsen from 2011 to 2017. When Ipsen walked away, OPM continued development independently before securing the deal with Servier two years later. Now, OPM is once again seeking a new partner for the program.

Strategic Focus and Future Plans

Despite the setbacks, OPM is moving forward with its core programs:

1. OPM-101: The company is focusing on this RIPK2 inhibitor, with plans to enroll the first patient in a phase 1b/2a trial for advanced melanoma patients with resistance to anti-PD-1 in July.

2. Radioligand Development: OPM continues its collaboration with Navigo Proteins in this area.

These strategic priorities are part of OPM's efforts to weather the current storm in the biotech investment landscape. The company had already reduced operating expenses by 19% last year by concentrating on these key programs.

As the pharmaceutical industry faces ongoing challenges, OPM's experience highlights the volatile nature of drug development partnerships and the need for biotechs to remain agile in the face of changing circumstances.