Finance Watch: With Limited Fundraising Options, Biotechs Restructure To Extend Cash Runways

A Closer Look At Recent Layoffs And Strategic Updates

 
• By Mandy Jackson
  
Generate a summary of this article
Listen to this article
Beta

Mereo will reduce its headcount by 40% to focus on its lead programs while NeuBase revealed a 60% workforce reduction to extend its cash runway. Also, Invivyd (formerly Adagio), Greenlight and BioMarin announced job cuts, while Otonomy and others planned strategic shifts. 

Finance Watch Image
• Source: Shutterstock

Bogged down by an ongoing spat with its largest shareholder and a share price that continues to flirt with penny stock territory, Mereo BioPharma Group plc announced an updated operating plan on 18 October that is designed to maximize shareholder value. The plan, which is meant to make Mereo’s £76m ($86m) in cash last into 2026, will focus the company’s resources on its two lead assets and results in a 40% reduction in headcount.

London-based Mereo trades on the Nasdaq in the US and its stock price has wobbled above and below the $1...

Scrip Podcast

Keep up with the top pharma business news of the week. On the go.

Scrip brings you a weekly bulletin of top picks.

SpotifyApple PodcastsWebsite

More from Strategy

Scrip-Business (Free-1): Top-Selling Drugs 2024: Keytruda, Ozempic And Dupixent Dominate

 
• By Nabil

Merck’s immuno-oncology blockbuster was the world’s best-selling drugs by revenues for the second year in a row, with an almost $12bn lead over its closest rival, Novo Nordisk’s GLP-1 drug Ozempic.

Ordspono Will Be Regeneron’s First Independent European Launch

 
• By Jessica Merrill

Ordspono, a bispecific antibody newly approved in the EU to treat follicular lymphoma and diffuse large B-cell lymphoma, joins Libtayo in Regeneron’s growing oncology portfolio.

Galderma Gets First Biologic To Market With Nemluvio Approval

 
• By Jessica Merrill

Nemluvio is a first-in-class IL-31 inhibitor that the US FDA approved for prurigo nodularis. 

Kerendia Could Be Next Jewel In Bayer's Pharma Crown

 
• By Kevin Grogan

CEO Bill Anderson would not be drawn on whether the drug, currently approved for chronic kidney disease associated with type 2 diabetes, will hit a previous forecast of €3bn peak sales, but expansion into heart failure may make that figure look conservative.

More from Business

How A New Healthcare Dialogue Is Driving Market Access In Mexico

Companies stand a better chance of securing public reimbursement in Mexico for innovative medicines if they understand changing approaches to healthcare. The shift means the emergence of managed entry agreements and a focus on economic impact, explains AMIIF, Mexico's research-based pharmaceutical industry association.

How Novartis Is Elevating CVD Outcomes, Driving ‘Personalized Access’ In APMA

Novartis’s APMA chief outlines the company’s tailored approach to deliver long-term outcomes, novel access solutions via innovative financing options and shape the CVD disease ecosystem in the extraordinarily diverse region. Partnering to build AI infrastructure is another key prong.

India Rare Diseases: Court Shows Path For Policy Action, Funding, Price Issues-- Test-2

A court order encompassing funding, drug pricing, clinical trials and overall policy implementation aspects is expected to bring about a paradigm shift in the treatment of rare diseases in India. Sarepta, Roche and Sanofi are among the key players that have been part of pricing discussions.