Following the6 February 2025 webinar, it has become increasingly clear thatcritical questions regarding the future of Percheron Therapeutics and its lead asset, ATL1102, remain unanswered.The information presented raises concerns aboutthe company’s decision-making processand the need forimproved governance and transparencyto safeguard shareholder value.
Key Issues Raised in the Webinar and Recent Disclosures
1. Lack of a Comprehensive Review of Alternative Development Paths for ATL1102
- The company emphasised thelack of statistical significancein thePUL2.0 primary endpoint, yetbiomarker data demonstrated pharmacological activity, suggesting that further investigation could be warranted.
- Notably, the company admitted that some patients were “doing very well,” which directly contradicts their overarching narrative that the drug is ineffective.Percheron Therapeutics stated thatinvestigators wanted to continue treatment for some patients beyond trial completion—implying that clinicians saw some patient benefit.Despite this, no analysis was presented to determine whether these patients belonged to aspecific responder subgroupor if adjustments to the study design could yield different outcomes.
2. Trial Design and Data Interpretation
- Thedoses tested (25mg and 50mg)may not have been optimised to demonstrate ATL1102’s full therapeutic potential.Typically, when biomarker activity is observed without clear functional improvements, further dose optimisation studies are considered.
- Thetrial included a wider age range (10-17 years) and multiple sites across five countries, introducingvariability in disease progression, steroid use history, and baseline function, which could haveobscured a potential signal of efficacy.
- Theplacebo group had longer steroid use (8.4 years vs. 5.7 years in the 50mg group),which may haveprotected them from functional decline, making itharder to detect a treatment benefit in the ATL1102 groups.
- No discussion was provided on the potential fora longer trial durationto assess whetherextended treatment could produce meaningful clinical benefits.
- Rather than recognisingthese limitationsand proposingimproved endpointsfor future trials, the company’s response does not explore these refinements and instead moves toward discontinuing the program.
3. Financial Considerations & Transparency
- Theestimated -7 million trial closure costs, as disclosed in thelatest quarterly report, were not explained in detail, warranting further clarification.
4. Governance and Shareholder Communication Concerns
- Thewebinar was announced to the ASX at 8:26 AM on the day of the event, just 34 minutes before its scheduled start at 9:00 AM, providinglimited notice to many shareholdersand reducing the opportunity for broad participation.
- The eventdid not include independent DMD experts, despite the significance of the Phase IIb trial results.
- Onlya small number of shareholder questions were addressed, leaving several material concerns unexamined.
- The presentationappeared structured to justify the company’s decision to discontinue ATL1102, rather thanserving as a balanced scientific assessment of the trial data and potential future options.
- The focus onfinancial considerations over exploring viable next steps for ATL1102suggestsa strategy aimed at winding down the program rather than seeking alternative development opportunities.
5. Balanced Approach: Optimising ATL1102 While Exploring New Growth Opportunities
- In ourdiscussions with shareholders, we are clarifying a comprehensivestrategic approachthat ensures any further work onATL1102 is targeted and justified.
- Aftermany years and substantial funding committed to ATL1102, we believe it isprudent to assess whether anything has been overlookedin the current Board’srush to move onfrom the program. Our goal is toreview all available data objectivelybefore making a final determination.
- At the same time, we recognise the importance ofexploring new opportunitiesto driveadditional growth for the companyanddiversify the pipeline.
- We arein discussions with multiple partiesto identifystrategic investment and development opportunities, ensuring that potential additions to the portfolio align withshareholder interests and market potential.
- All opportunities will becarefully screened by our panel of biotech specialiststo conduct due diligence on themost promising prospects, ensuring thatPercheron Therapeutics remains competitive and well-positioned for the future.
Why Board Replacement is Necessary
As shareholders, we must ensure that Percheron Therapeutics is led by aBoard that is committed to transparency, robust decision-making, and maximising shareholder value.
Under the leadership of the current Board,Percheron Therapeutics’ value has been significantly diminished and currently remains severely depressed, trading well below cash backing.This reflects aclear lack of market confidencein the Board’s ability tocreate value for shareholders.
Under the leadership ofDr. James Garner (CEO) and Dr. Charmaine Gittleson (Chair), Percheron Therapeutics has:
❌ Experienceda significant decline in share price performance even prior to trial failure.
❌Announced the termination of ATL1102’s development without presenting a detailed review of alternative paths forward.
❌Faced shareholder dissatisfaction,as reflected in past voting results.
To ensure athorough and independent assessment of the company’s strategic direction,we support a change in leadership and recommend shareholders vote forBoard replacement.
How to Vote for Board Replacement
To participate in the upcoming shareholder vote:
- Enter your postcode (or country of residence if outside Australia).
- Enter your Voting Access Code (VAC),which can be found in theNotice of Meeting correspondenceor accessed via the company's share registry,Boardroom Limited, on InvestorServe:https://www.investorserve.com.au/
- Direct your proxies to Gennadi Koutchin, Gregory Peters, or your professional advisor.
- Vote ‘FOR’ each resolution supporting Board replacement.
Ensuring a Stronger Future for Percheron Therapeutics
We,Gregory Peters and Gennadi Koutchin, are committed to:
✅Conducting an independent and comprehensive review of ATL1102’s potentialbefore any final decisions are made.
✅Improving transparency and communication with shareholders.
✅Ensuring financial discipline and accountability for all expenditures, including trial closure costs.
If you have questions or would like to share your thoughts, please reach out:
[email protected]
+61 423 500 233
This is a pivotal moment for Percheron Therapeutics.
Your vote will determine the future of the company.
Thank you for your support,
Gregory Peters & Gennadi Koutchin
Proposed Directors, Percheron Therapeutics Ltd
