OBSV - ObsEva to cut 70% of workforce

Swiss biotech ObsEva SA ( NASDAQ: OBSV ) announced Tuesday that the company’s board of directors authorized the termination of about 70% of its employees, including Katja Buhrer, Chief Strategy Officer.

The company said the terminations are expected to be substantially complete in Q4 2022 and generate ~$7.6M of annual savings.

Meanwhile, OBSV is expected to submit an audited balance sheet before September. 23 for a court to schedule a hearing on a moratorium.

The company has requested the court-sanctioned moratorium to implement additional restructuring initiatives and seek temporary protection against debt enforcement and bankruptcy proceedings in Switzerland.

In addition, OBSV disclosed that on Sep. 12, Nasdaq notified the company that it was not in compliance with listing rules related to the minimum bid price requirement.

The company has until Mar. 13 to regain compliance, and the notification has no immediate impact on OBSV common shares on the Nasdaq Global Select Market.

Meanwhile, on Aug. 29, OBSV has submitted a plan to regain compliance in relation to a previous Nasdaq notice related to the requirement to maintain a minimum of $10M in stockholders’ equity for continued listing on the exchange.

In early Aug., OBSV announced plans to retire $31M of debt and $11M of debt refinancing.

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