NeuBase Therapeutics, Inc. NBSE announced that it is planning to enter a restructuring process focused on the advancement of its pipeline in gene editing.
As a part of this strategic review by its board of directors and management team, the company is looking to streamline its organization, reduce operating expenses, preserve capital and maximize shareholder value.
The company will shelve preclinical activities for its Myotonic Dystrophy Type 1 (DM1), Huntington’s Disease (HD), and KRAS programs and hold plans to file an investigational new drug application to the FDA for DM1. NBSE expects to incur total expenses related to the restructuring process of around $0.5 million while recording a significant portion of these charges in the fourth quarter of the calendar year 2022.
The company is planning to enter into partnerships with other companies for the advancement of its DM1, HD and KRAS (G12D & G12V) programs.
NeuBase is also looking to maximize its cash resource with robust cost-containment measures. The company is planning to reduce its existing workforce by approximately 60%, which is expected to extend its cash runway into the second quarter of the calendar year 2024.
Shares of NeuBase were up 11.8% in after-hours trading on Friday following the announcement of the news. The stock has plunged 90.4% so far this year compared with the industry’s decline of 26.8%.
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NeuBase had cash and cash equivalents worth $29.8 million as of Jun 30, 2022.
NeuBase is engaged in developing a new class of precision genetic medicines that drug the genome, which are built on its proprietary platform called PATrOL.
Strategic reviews and restructurings are often considered by companies as cost-cutting initiatives. However, it remains to be seen how this review of strategic alternatives helps NeuBase to maximize its shareholders’ value while focusing on its pipeline.
Zacks Rank & Other Stocks to Consider
NeuBase currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the biotech sector are Acadia Pharmaceuticals Inc. ACAD, ORIC Pharmaceuticals, Inc. ORIC and Aeglea BioTherapeutics, Inc. AGLE, all carrying the same Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Acadia narrowed 0.8% for 2022 and 11.7% for 2023 in the past 60 days.
Earnings of Acadia surpassed estimates in two of the trailing four quarters and missed on the remaining two occasions. ACAD delivered an earnings surprise of 6.83%, on average.
Loss per share estimates for ORIC Pharmaceuticals narrowed 5.9% for 2022 and 7.3% for 2023 in the past 60 days.
Earnings of ORIC Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. ORIC delivered an earnings surprise of 8.85%, on average.
Loss per share estimates for Aeglea BioTherapeutics narrowed 3.5% for 2022 and 1.2% for 2023 in the past 60 days.
Earnings of Aeglea BioTherapeutics surpassed estimates in one of the trailing four quarters and missed on the other three occasions. AGLE delivered a negative earnings surprise of 3.34%, on average.
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