NeuBase Lays Off 60% Of Workforce, Reprioritizes Pipeline To Focus On Gene Editing Tech

NeuBase Therapeutics Inc (NASDAQ:NBSE) announced restructuring plans to focus on the advancement of its platform in gene editing.
The company has decided to shift its focus to gene editing, deferring preclinical activities for antisense programs targeting myotonic dystrophy type 1, Huntington's disease, and KRAS-mutant cancers.
As a result, the company is cutting its workforce by 60%. Sandra Rojas-Caro, head of R&D and chief medical officer, resigned.
The company's therapies are built on an antisense platform, PATrOL, to overcome many hurdles to selective mutation engagement, repeat dosing, and systemic delivery of genetic medicines.
"After careful consideration of the current development timelines for our pipeline in conjunction with the tightening of the capital markets for small biotech companies over the past year, we have made the strategic decision to focus NeuBase's resources on the development of our platform in gene editing, which we believe has the greatest potential to create long-term shareholder value," said CEO Dietrich A. Stephan.
After accounting for $0.5 million in restructuring costs, NeuBase says it now has a runway into the second quarter of 2024 to test out its new strategy.
Chardan Research downgraded the rating to Neutral from Buy and withdraw price target.
The analyst believes that the company's proprietary PATrOL design platform can be thought of as a toolkit to address a number of the known challenges with gene medicine payloads. It also notes that the company has yet to announce any preclinical data regarding its gene editing capabilities. Hence, making it difficult to construct an appropriate valuation model.
Price Action: NBSE shares are up 5.24% at $0.285 on the last check Monday.

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