Neoleukin Therapeutics Seeks Strategic Alternatives, To Layoff More In Round 2 Within 6 Months

Author: Vandana Singh | March 09, 2023 09:41am

• Neoleukin Therapeutics Inc (NASDAQ:NLTX) has engaged SVB Securities to assist in reviewing strategic alternatives. 
• Neoleukin also approved a further corporate restructuring to preserve cash, including reducing its workforce by approximately 70%. 
• After a short transition, Chief Executive Officer Jonathan Drachman will also be stepping down. The company expects this reduction in force to be completed during the first half of 2023.
• "The work that Neoleukin has done to advance the science of de novo protein design for immunotherapeutic use, including what we believe is the first in-human clinical trial of a de novo protein, is important and impressive," said Todd Simpson, Chairman of the Board of Neoleukin
• "However, based on the anticipated time and investment necessary to further develop the technology and potential product candidates in this challenging capital markets environment, we believe that it is appropriate to pursue other strategic options," added Simpson.
• In November 2022, Neoleukin discontinued the development of NL-201 for strategic reasons.
• Preliminary monotherapy data from the Phase 1 study of NL-201 did not demonstrate significant immunogenicity even after multiple cycles of therapy, as well as announced to cut 40% of the workforce.
• Price Action: NLTX shares are up 35.80% at $0.72 during the premarket session on the last check Thursday.

Posted In: NLTX