RUBY - Rubius stock slumps 26% as tumor trials of RTX-240 RTX-224 axed cuts 75% workforce

Rubius Therapeutics ( NASDAQ: RUBY ) said it was discontinuing ongoing trials of RTX-240 and RTX-224 for advanced solid tumors and was reducing its workforce by 75%.

Rubius is restructuring its business and implementing a series of cost-saving measures, which extends its cash runway until the end of 2023, the company said in a Sept. 13 press release.

Rubius added that it will focus its resources to advance its next generation red blood cell-based cell conjugation platform.

"Following careful review of recent technical progress in an alternative format for making Red Cell Therapeutics, we believe that this process has the potential for substantive improvements over our existing platform, and, therefore, continued investment in our two current clinical candidates is no longer justified," said Rubius President and CEO Pablo Cagnoni.

The restructuring measures include a 75% reduction in force, mainly focused on clinical development, manufacturing and general and administrative; discontinuing the phase 1 trials of RTX-240 and RTX-224 and exploring the sale of its manufacturing facility in Smithfield, Rhode Island.

The company noted that patients still on trial will continue to be dosed until disease progression or discontinuation.

RUBY -26.06% to $0.79 premarket Sept. 13

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