Precision oncology firm Black Diamond Therapeutics (Nasdaq:BDTX) has announced a restructuring plan to free up cash to prioritize the development of BDTX-1535 and BDTX-4933.
The company plans on trimming nearly one-third of its workforce.
BDTX shares ticked up about 1% to $2.75 after announcing the news yesterday but fell 4% today to $2.64.
According to the company, the reorganization could provide sufficient cash runway to last until the third quarter of 2024.
“In order to increase our operational efficiency and execute on our mission, we have made the difficult decision to reduce our workforce by approximately 30%,” said David Epstein, Black Diamond Therapeutics CEO, in a press release.
The company is also halting development work on BDTX-189. This drug candidate would have potentially been indicated for advanced breast cancer, biliary cancer, male breast cancer, non-small cell lung cancer, ovarian cancer and solid tumors.
BDTX-189 is an orally available, irreversible small molecule inhibitor.
When announcing its Q4 results in mid-March, Black Diamond Therapeutics said it anticipated announcing further guidance related to the program in 2022.
Black Diamond will continue to enroll subjects in the safety expansion cohort of the Phase 1 study associated with BDTX-189 but halt the development of the broader program, given changes in the competitive landscape.
BDTX-1535 is now the subject of a Phase 1 study.
In March, Black Diamond said it would initiate IND-enabling studies for BDTX-4933 in the first quarter of the year.
Filed Under: clinical trials, Drug Discovery, Oncology