NeuBase Therapeutics announces restructuring, cutting 60% of workforce
NeuBase Therapeutics (NASDAQ:NBSE) on Friday announced strategic restructuring to focus on its gene editing platform, which includes ~60% job cuts and a cost reduction plan that will extend its cash runway into Q2 CY24.
Stocks of NBSE, ended 9.7% lower on Friday, down 6.6% after the bell.
NBSE will delay preclinical actions for dystrophy type 1 (DM1), Huntington’s disease (HD), and KRAS (G12D & G12V) programs and plans to file an IND for DM1 with the US Food and Drug Administration.
The company is expected to incur ~$0.5 million in costs related to the restructuring, including costs related to severance and termination.
NBSE is expected to book a significant portion of these fees in Q4.
The company’s R&D chief and chief medical officer Sandra Rojas-Caro will step down, effective October 28.
The company names Dov Goldstein as president, effective immediately.
Dietrich Stephan, founder and CEO of NBSE, will continue to join the board as a director.
“While we continue to believe that PATrOL has the potential to provide the best treatments for rare and common diseases, we have decided to reallocate the Company’s resources by limiting our investment. into our DM1, HD and KRAS programs and pursue collaborative initiatives, said NBSE CEO Dietrich Stephan.