NEW YORK – Viracta Therapeutics on Wednesday said it is laying off 42 percent of its employees as part of a restructuring plan aimed at focusing its resources on developing nana-val (nanatinostat plus valganciclovir) as a treatment for Epstein-Barr virus (EBV)-positive peripheral T-cell lymphoma (PTCL).
As part of the restructuring plan, San Diego-based Viracta is also reducing the number of seats on its board of directors from 10 to six. The firm says this will lower costs, streamline operations, and bring the board more in line with those at other similarly sized companies. The four departing directors are leaving voluntarily, the company said.
After spending around $700,000 on employee severance and benefits packages, the firm expects the restructuring will free up the resources it needs to file a new drug application seeking the US Food and Drug Administration's approval for nana-val in relapsed or refractory EBV-positive PTCL.
Nana-val is an investigational therapy that comprises the histone deacetylase (HDAC) inhibitor nanatinostat plus the antiviral agent valganciclovir. Nanatinostat blocks isoforms of Class I HDACs, which in turn induces the expression of viral genes epigenetically silenced in EBV-related cancers.
Viracta has been evaluating nana-val in the pivotal NAVAL-1 clinical trial. In April, the firm announced plans to pursue accelerated FDA approval in EBV-positive PTCL based on encouraging efficacy data from the study.