eFFECTOR Therapeutics Debuts as Publicly Traded Next-Generation Oncology Company Advancing Mature Pipeline with New Class of Cancer Therapies
August 25 2021 - 7:18PM
eFFECTOR Therapeutics, Inc. (eFFECTOR), a leader in the development
of selective translation regulator inhibitors (STRIs) for the
treatment of cancer, today completed its business combination with
Locust Walk Acquisition Corp. (NASDAQ: LWAC). The
resulting combined company (the Company) has been renamed “eFFECTOR
Therapeutics, Inc.” and expects its common stock and public
warrants will commence trading on Nasdaq under the new trading
symbols “EFTR” and “EFTRW”, respectively, starting on August 26,
2021.
The stockholders of LWAC approved the transaction at a special
meeting held on August 24, 2021, and the transaction was previously
approved by eFFECTOR’s stockholders. eFFECTOR’s management team,
led by president and chief executive officer, Steve Worland, Ph.D.,
will continue to lead the Company.
“Cancer continues to be a major global health problem because of
its complexity, including multiple escape mechanisms. That is why
we are advancing the development of STRIs with the potential to
target a central node that drives multiple disease processes
simultaneously, including cancer’s inherent escape mechanisms,”
commented Dr. Worland. “We believe that our unique approach to
development, along with the capital raised from this transaction,
could help us unlock the potential of translation regulation to
bring this new class of therapies through the clinic and ultimately
to patients. Importantly, we anticipate that the cash available
from the transaction will see our company through key Phase 2 data
readouts for both of our lead programs.”
“With a strong pipeline with multiple near-term data readouts,
we are excited to see eFFECTOR Therapeutics take this very
important next step in its evolution,” stated Chris Ehrlich, former
chief executive officer and director of LWAC who will continue as a
director of the Company. “eFFECTOR’s expert team, along with the
strategy to accelerate the development of innovative programs that
are already progressing in the clinic, makes the Company
well-positioned in its efforts to transform treatments for patients
with cancer.”
Advisors
Credit Suisse and Stifel acted as lead placement agents for the
private placement (PIPE) in connection with the business
combination, and Credit Suisse also acted as capital markets
advisor to eFFECTOR. Locust Walk Securities also acted as PIPE
placement agent. Latham & Watkins LLP acted as legal counsel to
eFFECTOR. Cantor Fitzgerald acted as the lead capital markets
advisor to LWAC. JMP Securities and Mizuho Securities also acted as
capital markets advisors to LWAC. Mintz, Levin, Cohn, Ferris,
Glovsky and Popeo, P.C. served as legal counsel to LWAC.
About eFFECTOR Therapeutics
eFFECTOR is a clinical-stage biopharmaceutical company focused
on pioneering the development of a new class of oncology drugs
referred to as STRIs. eFFECTOR’s STRI product candidates target the
eIF4F complex and its activating kinase, mitogen-activated protein
kinase 1/2 (MNK). The eIF4F complex is a central node where two of
the most frequently mutated signaling pathways in cancer, the
PI3K-AKT and RAS-MEK pathways, converge to activate the translation
of select mRNA into proteins that are frequent culprits in key
disease-driving processes. Each of eFFECTOR’s product candidates is
designed to act on a single protein that drives the expression of
multiple functionally related proteins, including oncoproteins and
immunosuppressive proteins in T cells, that together control tumor
growth, survival and immune evasion. eFFECTOR’s lead product
candidate, tomivosertib, is a MNK inhibitor currently being
evaluated in KICKSTART, a randomized, double-blind,
placebo-controlled Phase 2b trial of tomivosertib in combination
with pembrolizumab in patients with metastatic non-small cell lung
cancer (NSCLC). Zotatifin, eFFECTOR’s inhibitor of eIF4A, is
currently being evaluated in Phase 2a expansion cohorts in certain
biomarker-positive solid tumors, including ER+ breast cancer and
KRAS-mutant NSCLC. eFFECTOR has a global collaboration with Pfizer
to develop inhibitors of a third target, eIF4E. In addition to the
company’s oncology focus, zotatifin is being evaluated as a
potential host-directed anti-viral therapy in patients with mild to
moderate COVID-19 in collaboration with the University of
California, San Francisco, under a $5 million grant sponsored by
the Defense Advanced Research Projects Agency.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. All statements
other than statements of historical facts contained in this press
release, including statements regarding the expectation and timing
of eFFECTOR’s common stock to commence trading on Nasdaq,
eFFECTOR’s timing and likelihood of success, future results of
current and anticipated products and the sufficiency of the cash
available from the transaction to allow clinical trial data
readouts, are forward-looking statements. These forward-looking
statements generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions,
including, but not limited to, the ability to realize the
anticipated benefits of the transaction; eFFECTOR may use its
capital resources sooner than it expects; and the outcome of any
legal proceedings that may be instituted related to the
transaction. Moreover, eFFECTOR operates in a very competitive and
rapidly changing environment. Because forward-looking statements
are inherently subject to risks and uncertainties, some of which
cannot be predicted or quantified and some of which are beyond
eFFECTOR’s control, you should not rely on these forward-looking
statements as predictions of future events. The foregoing list of
factors is not exclusive, and you should carefully consider the
foregoing factors and the other risks and uncertainties described
in the “Risk Factors” section of the registration statement on Form
S-4 filed with the SEC in connection with the Business Combination
and documents filed by the Company from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and except as required by law. eFFECTOR assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contacts:
Investors:Stephanie CarringtonWestwicke, an ICR
Company646-277-1282Stephanie.Carrington@westwicke.com
Media:Heidi Chokeir, Ph.D.Canale
Communications619-203-5391heidi.chokeir@canalecomm.com
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