Barinthus Bio cuts staff by 25% and refocuses pipeline

Barinthus Biotherapeutics, a UK-based T cell therapy specialist, is undergoing significant restructuring and strategic shifts. Named after a mythological navigator, Barinthus is setting a new direction by prioritizing certain drug candidates while reducing its workforce. This change involves shelving its prostate cancer therapy and cutting approximately a quarter of its staff.

Barinthus, formerly known as Vaccitech, will now focus on two key immunotherapy candidates: VTP-300 and VTP-1000. VTP-300 targets chronic hepatitis B, while VTP-1000 is aimed at coeliac disease. Following the announcement on June 12, Barinthus saw its shares drop by 4.7% when the market opened on June 13. As of now, the company's market capitalization stands at $73 million.

In line with these changes, Barinthus plans to extend its financial runway to the second quarter of 2026, pushing back its previous projection of the fourth quarter of 2025. The company currently employs around 130 people but expects to reduce this number significantly as part of the restructuring.

The decision to prioritize VTP-300 comes after promising interim results from two Phase II trials, presented at the European Association for the Study of the Liver (EASL). The data showed that VTP-300 could significantly reduce hepatitis B surface antigen (HBsAg) levels and potentially achieve undetectable levels in chronic hepatitis B patients. CEO Bill Enright expressed optimism about VTP-300’s potential as part of a functional cure regimen for Hepatitis B, stating that this pipeline prioritization puts the company in a strong position for success.

On the other hand, the prioritization of VTP-1000 is based on encouraging preclinical data. This candidate aims to induce gluten-specific T regulatory cells and reduce gluten-specific T effector cell responses, thereby mitigating the immune response in coeliac disease patients. A Phase I trial for VTP-1000 is slated to begin in the third quarter of 2024.

As VTP-300 and VTP-1000 move forward, Barinthus' prostate cancer candidate, VTP-850, seems to be taking a back seat. Although a Phase I trial for VTP-850 will be completed, the company has not disclosed any further plans for this candidate. Additionally, VTP-200, an infectious disease candidate, recently completed a Phase Ib/II trial but did not meet efficacy expectations, despite achieving its primary safety endpoint.

Barinthus is not alone in making such drastic changes. Several other companies have also reduced their workforce to manage cash flow and focus on strategic priorities. For instance, Senti Bio cut 37% of its employees in January, Xilio let go of 21% of its workforce, and Erasca recently reduced its headcount by 18% after shutting down three clinical programs.

In summary, Barinthus Biotherapeutics is realigning its focus towards its most promising drug candidates while undergoing significant restructuring, including a major workforce reduction. These changes are aimed at extending its financial runway and maximizing the potential for success in its prioritized drug development programs.