Viracta Therapeutics Shifts Resources to Focus on Nana-val for EBV-Positive Lymphoma

Viracta Therapeutics, Inc. announced significant organizational changes aimed at aligning its resources with key priorities in its ongoing clinical programs. The company, which is listed on the Nasdaq under the ticker VIRX, is focused on the treatment and prevention of cancers associated with viruses. A major focus for Viracta is its Nana-val development program, targeting patients with relapsed or refractory Epstein-Barr virus-positive peripheral T-cell lymphoma (PTCL).

As part of this strategic shift, Viracta has decided to reduce its workforce by approximately 42%. This reduction is intended to streamline operations and better allocate resources to advance the Nana-val program. The company expects to incur about $0.7 million in expenses related to severance and other benefits for the affected employees. Mark Rothera, Viracta's President and CEO, emphasized the necessity of these measures to efficiently progress towards a potential New Drug Application (NDA) submission for Nana-val in treating PTCL. Rothera also expressed his deep appreciation for the efforts and dedication of the employees impacted by the layoffs.

Further cost-cutting measures include a reduction in the size of Viracta's Board of Directors. The board will shrink from ten members to six, following the voluntary resignations of directors Jane F. Barlow, M.D., Jane Chung, R.Ph., Sam Murphy, Ph.D., and Stephen Rubino, Ph.D., effective October 31, 2024. This decision was made to streamline governance and reduce costs, aligning the board’s size with that of similar companies. The remaining board members include Roger J. Pomerantz, M.D. (Chairman), Flavia Borellini, Ph.D., Thomas E. Darcy, CPA, Mark Rothera, Ivor Royston, M.D., and Barry J. Simon, M.D. Pomerantz highlighted the importance of maintaining a strong governance structure and recognized the contributions of the departing board members.

Viracta remains committed to its mission of developing precision oncology treatments for virus-related cancers. The company’s primary therapeutic candidate, Nana-val, combines the investigational drug nanatinostat with the antiviral agent valganciclovir. This combination is currently undergoing multiple clinical trials, including a global multicenter Phase 2 trial for various subtypes of relapsed or refractory Epstein-Barr virus-positive lymphomas (NAVAL-1), as well as a Phase 1b/2 trial for recurrent or metastatic Epstein-Barr virus-positive nasopharyngeal carcinoma and other advanced solid tumors.

The company's research strategy, known as the "Kick and Kill" approach, aims to target and eliminate virus-associated cancers by reactivating dormant viruses within cancer cells and then destroying the infected cells. This innovative approach is being tested across different types of cancers linked to viral infections.

In summary, Viracta Therapeutics is making strategic adjustments to focus its resources on the most promising areas of its clinical pipeline. By reducing its workforce and resizing its board, the company aims to streamline operations and expedite the development of its lead product candidate, Nana-val. Despite these changes, Viracta continues to advance its mission of developing effective treatments for virus-associated cancers, impacting patients globally.