ContraFect Cuts Workforce After Trial Setback

  • ContraFect Corporation CFRX said it continues to advance lead programs toward new clinical studies and expects to file with regulatory authorities later this year to initiate a study of intra-articular exebacase in chronic or recurrent prosthetic joint infections. 
  • The company is also completing the GLP toxicology studies required for the IND application of CF-370 for resistant gram-negative infections. It expects to advance CF-370 into clinical development with a multiple-day dose regimen.
  • Last month, Data Safety Monitoring Board recommended that the DISRUPT trial be stopped because the conditional power of the study was below the pre-specified threshold for futility.
  • The company expects to complete the analysis by the end of Q3 to inform the next steps for any potential further development of the exebacase.
  • ContraFect reduced its workforce by 16 employees, or approximately 37%. It will recognize a restructuring charge of around $1.5 million in Q3 and expects the headcount reduction to lower its annual operating costs by over $4.0 million. 
  • This reduction includes the resignation of Cara Cassino as Chief Medical Officer and Executive Vice President of R&D.
  • The company ended the June quarter with cash, cash equivalents, and marketable securities of $27.3 million.
  • Price Action: CFRX shares are down 3.86% at $0.29 during the market session on the last check Monday.
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