Check-Cap (NASDAQ:CHEK) is exploring strategic alternatives, such as the sale of all or part of the company, licensing, merger or reverse merger, and has retained Ladenburg Thalmann as an advisor to the company.
Check-Cap was best known for its investigational C-Scan, a capsule-based screening test to detect polyps before they might transform into colorectal cancer and enable early intervention and cancer prevention.
The most recent efficacy results from the company’s calibration studies did not meet the goal in order to proceed to the powered portion of a U.S. pivotal study.
After further review of additional data and interaction with the FDA on a revised pivotal study protocol together with the anticipated time and investment necessary to further develop the technology, the company’s board determined that it is appropriate to pursue strategic options.
In addition, the board has approved a reduction in its workforce by approximately 90% to reduce its cash burn and expects to have eight remaining employees.
In light of these developments, the company is discontinuing the calibration studies and does not plan on commencing the powered portion of its U.S. pivotal study. It plans to concentrate its resources on its essential research activities and strategic alternatives.
