EQRx Announces Massive Strategic Reset, Slashes Pipeline & Workforce

EQRx Inc EQRX will lay off 170 people and incur non-recurring costs of approximately $45 - $55 million for wind down, termination, and exit costs. EQRx went public in December 2021 via a SPAC merger. 

The company was founded on the premise that it could dramatically lower drug prices.

In November, the company announced that one of its lead drugs was not commercially viable and would pursue "market-based pricing" for two others. 

In February, EQRx announced further streamlining expenses, including an 18% decrease in the company's workforce by the end of the first quarter of 2023 to approximately 300 employees.

As part of Monday's announcement, the company is discontinuing several pipeline candidates. It is terminating license agreements for sugemalimab (anti-PD-L1 antibody) and nofazinlimab (anti-PD-1 antibody) with China-based CStone Pharmaceuticals.

EQRx has provided notice to Lynk Pharmaceuticals (Lynk) of its termination of the license agreement for EQ121 (Janus kinase (JAK)-1 inhibitor).

The company is seeking commercialization partnerships for aumolertinib (third-generation EGFR inhibitor).

EQRx plans to separate its early-stage immune-inflammatory (I&I) R&D programs from its oncology business into a new wholly-owned subsidiary, and intends to explore its path as an independent company and pursue additional funding options. 

Monday's changes leave EQRx with just one clinical program: a CDK4/6 inhibitor, lerociclib. It maintains a $1.3 billion cash position to advance lerociclib through clinical trials.

Portfolio decisions and a substantial reduction in the workforce are expected to drive annualized cash savings of at least $125 million and significantly lower future cash burn.

"Going forward, EQRx will leverage its significant scale of capital and team of experienced 'drug hunters' towards developing clinically differentiated, high-value medicines," CEO Melanie Nallicheri said.

Price Action: EQRX shares closed at $1.84 on Monday.