But the execs in charge are now cutting that off, too.
Rafael will curtail its early-stage efforts, including preclinical research, the company disclosed, in a move to reduce spending and focus on finding clinical-stage programs from outside that it could potentially invest in, acquire or in-license.
UPDATED: Rafael Holdings guts its top leadership, including short-tenured CEO, as cancer fiasco spurs a shakeup The company wrote in an SEC filing that the move is expected to “incur severance charges in the amount of approximately $0.5 million,” but didn’t specify how many employees may be laid off.
Shares on NYSE $RFL traded up slightly after hours to pass the $2 mark, a fraction of its peak last summer, when it was trading close to $63.
The disappointing Phase III results, announced a year ago, triggered a major shakeup at the top of the company. As Mallik returned the reins to founder Howard Jonas, Rafael Holdings bid farewell to a number of top execs, including then-chief commercial and business officer Bill Conkling — before later announcing that Conkling will actually remain with the company and take up the CEO role.
Under Conkling, Rafael has sold a building in New Jersey, complete with a garage, for $33 million in cash. That added to its reserves of about $63 million as of July 31.
Small biotech whiffs badly in PhIII pancreatic cancer study, prompting halt of another late-stage trial In a statement, Conkling said the “strong balance sheet affords us the opportunity to focus on strategic business development efforts at a time of substantive dislocation in the biotech sector,” with an eye on programs that are near clinical milestones.