NeuBase Therapeutics Announces Restructuring Plan; To Cut Workforce By About 60%

(RTTNews) - NeuBase Therapeutics Inc. (NBSE) Friday announced plans to restructure the company, which includes workforce reduction by 60%. The company expects the strategic resturcturing will help it focus on the advancement of its platform in gene editing.

"After careful consideration of the current development timelines for our pipeline in conjunction with the tightening of the capital markets for small biotech companies over the past year, we have made the strategic decision to focus NeuBase's resources on the development of our platform in gene editing, which we believe has the greatest potential to create long-term shareholder value. This effort is accompanied by a robust cost reduction plan that we expect to extend our cash runway into the second quarter of calendar year 2024," said Dietrich Stephan, Ph.D., Founder and Chief Executive Officer of NeuBase.

As part of the cost-cutting strategy and development pipeline shift to gene editing, the company said it will defer preclinical activities for its DM1, HD, and KRAS programs and hold plans to submit an Investigational New Drug (IND) application for DM1 to the U.S. Food and Drug Administration (FDA).

The company estimates that it will incur total expenses relating to the restructuring of around $0.5 million, consisting of severance and termination-related costs and expects to record a significant portion of these charges in the fourth quarter of calendar year 2022. This restructuring plan is expected to extend the company's cash runway into the second quarter of calendar year 2024 based on current operating plans and estimates.

Meanwhile, the company's Head of Research and Development and Chief Medical Officer, Dr. Sandra Rojas-Caro, notified her intent to resign and will be departing NeuBase on October 28, 2022.