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Cytori CFO Resigns, Biotech Restructures In Bid To Focus Resources On Lung Cancer Drug

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Cytori CFO Resigns, Biotech Restructures In Bid To Focus Resources On Lung Cancer Drug

Thinly traded nano-cap biotech Cytori Therapeutics Inc (NASDAQ: CYTX), which has been trading in penny stock territory for about a year now, could see some activity in the wake of a company announcement Friday. 

What Happened

Cytori said in an filing with the SEC that CFO Gary Titus notified the company of his intention to resign from his position effective immediately; Cytori said he will continue with the company as an adviser.

The company said its board has approved the appointment of Alan Lins as Titus' successor as vice president of finance and controller. 

The company also said in a filing it has commenced restructuring activities that include a reduction in combined staffing in its California facilities by 46% overall, a reduction in its office space in San Diego; and the streamlining and outsourcing of operations.

Why It's Important

These actions will extend Cytori's cash resources, allowing it to focus on its drug pipeline and ATI-1123 in particular, according to the company. 

Cytori issued an update Monday on the development of ATI-1123 in the wake of feedback from the FDA that suggested the company could use the 505(b)(2) pathway for regulatory submission.

The regulatory body also said completed non-clinical studies are sufficient to support the initiation of the clinical trial of ATI-1123 in patients with platinum-sensitive small cell lung cancer who have progressed at least 60 days after the initiation of the first-line therapy.

ATI-1123, a substantially redesigned and reformulated new drug based in part on the active pharmaceutical ingredient docetaxel, is in a Phase 1 trial.

Cytori intends to proceed with a follow-on Phase 2 trial.

Cytori said it expects to incur a restructuring charge of about $71,000 primarily in the third quarter of 2019.

The stock was trading higher by 1.98% at 24 cents at the time of publication Friday. 

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