Thallion Pharmaceuticals Inc. (TSXTLN) announced that it has suspended patient enrollment in its Phase II trial evaluating TLN232 as a treatment for metastatic melanoma, due to an ongoing dispute with the licensor. A binding arbitration proceeding has been initiated and Thallion will reevaluate the status of the program based on the outcome of the adjudication.

“Based on our experience with this licensor, it is in the best longterm interests of our shareholders to suspend development of TLN232 as opposed to investing additional resources to develop the product under recurring allegations of breach from the licensor and ensuing disputes over a termination of the license,” said Lloyd M. Segal, Chief Executive Officer of Thallion Pharmaceuticals Inc. “We believe that the assertions made against us under the license agreement are without merit. We will vigorously defend our rights in this matter, and we intend to pursue claims of our own against the licensor during the proceedings. We believe this decision represents the most responsible course of action and is especially prudent in light of todays constrained capital environment.”

About TLN232

TLN232 is a novel seven aminoacid peptide with potential efficacy in multiple oncology indications and targets pyruvate kinase M2 (M2PK), a protein shown to be overexpressed in a number of different tumour types. The expression of M2PK during tumourigenesis has been shown recently to mediate the Warburg effect, a phenotype in which cancer cells utilize the glycolytic pathway to a far greater extent than do their nonmalignant counterparts.

TLN232 Phase II Trial

Thallions multicentre, open label Phase II trial is targeting to enroll up to 49 metastatic melanoma patients, who have failed one prior therapy, at multiple sites in both Canada and the U.S. The trial design is comprised of a dose escalation segment followed by a dose expansion segment. The first segment consists of consecutive cohorts of at least three patients each, who will receive 0.5, 1.0, 2.0 or 3.0 mg/kg/day of TLN232 in multiple cycles. Each cycle will consist of 21 days of treatment and seven days of rest. Once the optimal dose has been determined, the second segment of the trial will enroll and treat up to 34 additional patients at that dose until disease progression. The primary endpoint of the trial is tumour response at four months.

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