ContraFect Cuts Workforce After Trial Setback

ContraFect Corporation CFRX said it continues to advance lead programs toward new clinical studies and expects to file with regulatory authorities later this year to initiate a study of intra-articular exebacase in chronic or recurrent prosthetic joint infections.
The company is also completing the GLP toxicology studies required for the IND application of CF-370 for resistant gram-negative infections. It expects to advance CF-370 into clinical development with a multiple-day dose regimen.
Last month, Data Safety Monitoring Board recommended that the DISRUPT trial be stopped because the conditional power of the study was below the pre-specified threshold for futility.
The company expects to complete the analysis by the end of Q3 to inform the next steps for any potential further development of the exebacase.
ContraFect reduced its workforce by 16 employees, or approximately 37%. It will recognize a restructuring charge of around $1.5 million in Q3 and expects the headcount reduction to lower its annual operating costs by over $4.0 million.
This reduction includes the resignation of Cara Cassino as Chief Medical Officer and Executive Vice President of R&D.
The company ended the June quarter with cash, cash equivalents, and marketable securities of $27.3 million.
Price Action: CFRX shares are down 3.86% at $0.29 during the market session on the last check Monday.

Earnings Calendar