After disclosing a proposal for organizational reorganization, NeuBase Therapeutics Inc. (NASDAQ: NBSE) shares increased 11.85% to $0.3029 on Friday after-hours trading. The NBSE stock lost -9.73% to close the last trading session at $0.27.
What has NBSE disclosed?
NeuBase (NBSE) disclosed plans to reorganize the business to concentrate on the development of its gene-editing platform. The Company’s board of directors and management team conducted a strategic internal assessment before deciding to implement this plan, which consists of a number of actions targeted at simplifying the organization, cutting operational costs, preserving capital, and maximizing shareholder value.
- NeuBase made the strategic choice to concentrate its resources on the development of its gene editing platform, which has the greatest potential to generate long-term shareholder value, after carefully evaluating the current development timelines for its pipeline and the tightening of the capital markets for small biotech companies over the past year.
- Along with this endeavor, NBSE will be extending its financial runway beyond the second quarter of the calendar year 2024 with a substantial expense reduction strategy.
- Management has made the decision to reprioritize Company resources by limiting future investment in its DM1, HD, and KRAS programs and pursuing collaborative initiatives, including partnerships, for these programs.
- NBSE believes that PATrOL has the capacity to deliver best-in-class treatments for rare and common diseases.
- The next generation of treatments to treat diverse high-value genetic mutations will be developed by NBSE thanks to the differentiated gene editing capabilities.
- The Company will postpone preclinical efforts for its DM1, HD, and KRAS projects as part of the cost-cutting strategy and development pipeline shift to gene editing, and hold plans to submit an Investigational New Drug (IND) application for DM1 to the US Food and Drug Administration (FDA).
- The overall cost of the reorganization, including severance and termination-related expenditures, is estimated by the company to be around $0.5 million.
- The company anticipates recording a sizable percentage of these charges in the fourth quarter of the calendar year 2022.
How NBSE will proceed further?
Based on current operating plans and projections, this restructuring strategy is anticipated to prolong the NBSE’s cash runway beyond the second quarter of the calendar year 2024. Dr. Sandra Rojas-Caro, the company’s head of research and development and chief medical officer, informed the company of her intention to quit and would leave NeuBase (NBSE) on October 28, 2022.