Sensei Biotherapeutics Discontinues Cancer Drug Program, Announces Restructuring

Sensei Biotherapeutics, a clinical-stage biotechnology company, has announced the discontinuation of its sole clinical-stage cancer drug program and plans for significant restructuring, including layoffs, to conserve its remaining cash reserves.

Clinical Program Termination

Sensei has decided to wind down the phase 1/2 clinical trial of solnerstotug, its anti-VISTA monoclonal antibody. This decision comes just two weeks after the company reported promising data from the trial, which showed a six-month progression-free survival rate of 50% in the 15-mg/kg cohort for patients with "hot" tumor types.

John Celebi, CEO of Sensei, stated, "We have seen solnerstotug demonstrate clinical activity in a patient population with significant unmet need. However, after careful review of future funding needs and the current capital markets environment, we have determined not to initiate a new clinical study."

Financial Constraints and Workforce Reduction

The company's decision appears to be driven primarily by financial considerations. As of June 2023, Sensei reported having $28.6 million in cash reserves, which it had previously estimated would last into the second quarter of 2026. However, the costs associated with advancing the clinical program likely proved unsustainable given the current market conditions.

In response to these financial pressures, Sensei has announced plans for a workforce reduction. The company intends to retain only a small team of employees to assist in exploring strategic alternatives, maintaining compliance with regulatory and financial reporting requirements, and managing the orderly cessation of development activities.

Strategic Alternatives and Company Outlook

Sensei is now exploring a range of strategic alternatives for its future. These options include:

1. Potential sale of its preclinical solid tumor candidates
2. Merger with another entity
3. An orderly wind-down of operations

This latest restructuring follows a previous round of layoffs less than a year ago, when Sensei reduced its workforce by 46% and closed its research site in Rockville, Maryland. At that time, the decision was made to focus resources on the solnerstotug program.

The company's trajectory since its 2021 initial public offering (IPO), which raised $133 million, highlights the challenges faced by early-stage biotechnology companies. Shortly after going public, Sensei discontinued development of its previous lead candidate, a vaccine targeting the tumor antigen aspartate beta hydroxylase for head and neck cancer, due to disappointing trial data.

As Sensei navigates this critical juncture, the biotech industry watches closely to see how the company will manage its remaining assets and what lessons can be learned from its experience.