Workforce reduction of approximately 30%
Cash runway extended into 2023
Resources to be focused on late-stage assets, poziotinib and ROLONTIS®
Spectrum Pharmaceuticals (NasdaqGS: SPPI), a biopharmaceutical company focused on novel and targeted oncology therapies, today announced a strategic restructuring. The company will prioritize its late-stage product opportunities, poziotinib and ROLONTIS® (eflapegrastim), and will deprioritize development activities of its early-stage clinical development and research programs. The company has made these decisions following a detailed review of its operations, portfolio and growth opportunities, and will focus its resources accordingly.
"The decision to restructure the organization is necessary to focus on our advanced clinical programs that will drive our future growth. I would like to express my appreciation to our colleagues who are affected by this decision and are leaving Spectrum. We are grateful for their dedication and their contributions to advancing our mission," said Tom Riga, President and Chief Executive Officer, Spectrum Pharmaceuticals. "The changes we are implementing are expected to result in a reduction in operating expenses and the extension of the company’s cash runway into 2023."
Spectrum intends to implement the following strategic restructuring initiatives to reduce its expenses and extend its existing cash runway:
Spectrum is prioritizing the development activities for its late-stage assets, poziotinib and ROLONTIS, and will deprioritize work on its early-stage pipeline, FIT Program (IGN 002) and IL-12.
The company restructuring will result in a workforce reduction of approximately 30%.
Operating cash burn is expected to be reduced by 20-25%, which should extend the cash runway into 2023.
The physical footprint of selected facilities will be significantly reduced in 2022.
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