- NGM Biopharmaceuticals Inc NGM announced will be reducing its workforce by 75 staffers, or a third of the workforce, to extend its cash runway into 2025.
- In its Q4 earnings, the company hinted at financial issues, narrowing its focus on oncology and intending to partner out some other programs in a cash-saving move.
- The company estimates it will incur approximately $5.0 million in restructuring charges in connection with the restructuring, with the majority in the second quarter of 2023.
- Founder Jin-Long Chen resigned as Chief Scientific Officer after 15 years with the company and as a Board member, effective April 4, 2023.
- In an email to employees announcing the decision, CEO David Woodhouse said, "Raising capital has become increasingly difficult for companies in our industry over the last couple of years."
- "In this regard, while we had hoped to be able to pursue a significant financing on the back of positive clinical data in 2022 following CATALINA, the clinical data we announced, unfortunately, did not support pursuing such a financing at that time."
- CATALINA Phase 2 trial testing NGM's C3-inhibiting antibody in geographic atrophy flunked the primary endpoint, and the biotech's shares took a beating when it unveiled the results in October.
- "Ongoing efforts to reduce our other operational expenses will not be sufficient on their own," Woodhouse wrote.
- "While our strategy continues to include seeking business development transactions for one or more of our programs, even if we were to succeed in securing a deal or deals this year, we believe a restructuring would still be necessary to arrive at a more sustainable cash burn rate," he wrote.
- Price Action: NGM shares are trading flat at $3.96 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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