Exicure Lays Off Two-Third Employees, Ceases R&D Activities - Exicure (NASDAQ:XCUR)

Exicure Inc XCUR announced restructuring plans and aligned resources to continue exploring strategic alternatives.
The company will cut its workforce by approximately 66%, expected to be completed by the fourth quarter of 2022.
It will also cease all R&D activities, including suspension of all partnered programs.
Exicure is looking for divesture opportunities for clinical-stage asset in immuno-oncology and preclinical candidates, including the SCN9A product candidates for neuropathic pain.
The company estimates that it will incur total expenses for the restructuring of approximately $0.5 million. This restructuring plan is expected to extend the company's cash runway into Q2 2023.
For the SCN9A program targeting the Nav 1.7 channel for neuropathic pain, Exicure developed several potential candidates showing promising activity in preclinical studies. But the results from a recent in-vivo animal study in non-human primates did not meet desired target engagement.
Additional preclinical studies would be required, delaying the timing of IND-enabling work.
Hence, Exicure has suspended further preclinical activities for the SCN9A program as it assesses strategic alternatives for all its assets.
Exicure also announced a private placement of 3.4 million at $1.60 per share to existing investor CBI USA Inc for gross proceeds of $5.4 million.
CBI USA would hold a controlling position in Exicure, equivalent to approximately 50.4% of the total voting power.
Price Action: XCUR shares closed lower by 4.12% at $1.63 during after-hours trading on Monday.

Market News and Data brought to you by Benzinga APIs