Testosterone-Drug Focused Penny Stock Falls On Bankruptcy Fears

Clarus Therapeutics Holdings Inc CRXT has implemented a 40% reduction in staff as it evaluates strategic alternatives and terminates certain research and development activities.
With $19.2 million in cash & cash equivalents and $40.5 million of senior notes payable, the company is pulling out all the stops to stay afloat.
Clarus also decided to combine the positions of chief financial officer and chief administrative officer. As a result, CFO Richard Peterson will leave the company while CAO Steven Bourne picks up his job.
The company sells an oral testosterone replacement drug, Jatenzo.
Management believes the existing cash balance and sales will fund current estimated operating expenses (after implementing headcount reduction) and capital expenditure requirements into September 2022.
The company noted it might have to stop marketing Jatenzo and file for bankruptcy unless it can restructure its indebtedness and find new capital.
Robert Dudley, Clarus president & CEO, blames the moves — even as Jatenzo sales have grown — on the challenging financing environment.
Clarus expects severance and related expenses for the layoffs to add up to $1.1 million.
Price Action: CRXT shares are down 26.5% at $0.2081 on the last check Friday.