Heidelberg Pharma Significantly Reduces Operating Costs and Focuses on Lead ADC Candidate HDP-101 Due to Delayed Milestone Payment
- Milestone payment of USD 70 million from royalty financing agreement with HealthCare Royalty delayed as payment condition has not yet been met
- Clinical Phase I/IIa trial with HDP-101 in Multiple Myeloma will continue as planned; further pipeline programs will be adapted
- Significant reduction in the workforce by approx. 75%
- Cash reach extended until mid-2026
Ladenburg, Germany, 25 September 2025 – Heidelberg Pharma AG (FSE: HPHA), a clinical stage biotech company developing innovative Antibody Drug Conjugates (ADCs), today resolved with the approval of the Supervisory Board to implement extensive cost-saving measures and consequently, to focus all development activities exclusively on lead ADC candidate HDP-101 to extend the Company’s cash reach. This is due to the delay of an expected milestone payment of USD 70 million from the royalty financing agreement with HealthCare Royalty (HCRx), as the payment condition has not yet been met.
Professor Andreas Pahl, Chief Executive Officer of Heidelberg Pharma, commented: “Over the past few weeks, we intensively discussed with the Supervisory Board various options and strategies that would ensure the continuation of our clinical and operational activities in their current form. In this situation we need to prioritize projects. The decision to focus on our main project HDP-101 and the cost-saving measures are a necessary step to maintain our liquidity and will result in a significant reduction in workforce. We deeply regret this decision. We would like to thank all employees for their long-standing commitment and their professional contribution in advancing our unique ADC technology through research and development to patients. We will provide the colleagues affected with the best possible support during this professional transition.”
The clinical development of HDP-101, an Amanitin-based ADC that is currently in a Phase I/IIa trial in Multiple Myeloma, will continue as planned. A second clinical program, HDP-102, will temporarily be paused. Clinical Trial Application for HDP-103 will be prepared for submission as planned.
Early research activities will be discontinued stepwise, and Heidelberg Pharma will explore outlicensing options for its preclinical programs.
The Executive Management Board plans to reduce the workforce companywide by approximately 75% by mid-2026.
The Executive Management Board continues to evaluate alternative financing options together with the Supervisory Board. Cash as of 31 August 2025 was EUR 22.9 million and is expected to be sufficient to continue operations until mid-2026 after implementation of the aforementioned measures. The financial guidance published on 21 March 2025 will be reviewed in light of the measures just adopted and adjusted in a timely manner if necessary.
For further details on the background to the measures, please refer to the ad hoc announcement dated 28 August 2025 (Ad hoc announcement as of 28 August 2025).
Invitation to the webcast
On Thursday, 25 September 2025, Heidelberg Pharma will hold a conference call for media, analysts, and investors in English at 3:00 pm CEST/9:00 am EDT. Please register at least 10 minutes in advance using the following link:
https://us06web.zoom.us/webinar/register/WN_eyvcBX7VTD2HjhlLYDmHdg
You will receive an e-mail with your registration confirmation, which contains the link to participate in the audio webcast as well as dial-in numbers for participation by phone. Please note that asking oral questions is only possible for online participants.
