NBSE - NeuBase Therapeutics announces restructuring to cut 60% of workforce

NeuBase Therapeutics ( NASDAQ: NBSE ) on Friday announced a strategic restructuring to focus on its gene editing platform, including ~60% job cuts and a cost reduction plan that will extend its cash runway into Q2 CY24.

Shares of NBSE, which ended 9.7% lower on Friday, fell 6.6% after the bell.

NBSE will defer preclinical activities for its dystrophy type 1 (DM1), Huntington's disease ( HD ), and KRAS (G12D & G12V) programs and hold plans to submit an IND application for DM1 to the U.S. Food and Drug Administration.

The firm expects to incur ~$0.5M expenses relating to the restructuring, comprising severance and termination-related costs.

NBSE expects to record a significant portion of these charges in Q4.

The firm's head of R&D and chief medical officer Sandra Rojas-Caro will step down, effective Oct. 28.

The firm named Dov Goldstein as chairperson, effective immediately.

Dietrich Stephan, NBSE's founder and CEO, will continue on the board as a director.

“While we continue to believe PATrOL has the ability to deliver best-in-class treatments for rare and common diseases, we have decided to reprioritize Company resources by limiting future investment in our DM1, HD, and KRAS programs and pursue collaborative initiatives, including partnerships, for these programs," said NBSE CEO Dietrich Stephan.

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