Clinical Setbacks Prompt NGM Bio Lay Off One Third Of Its Staff, Founder Leaves

NGM Biopharmaceuticals Inc NGM announced will be reducing its workforce by 75 staffers, or a third of the workforce, to extend its cash runway into 2025.
In its Q4 earnings, the company hinted at financial issues, narrowing its focus on oncology and intending to partner out some other programs in a cash-saving move.
The company estimates it will incur approximately $5.0 million in restructuring charges in connection with the restructuring, with the majority in the second quarter of 2023.
Founder Jin-Long Chen resigned as Chief Scientific Officer after 15 years with the company and as a Board member, effective April 4, 2023.
In an email to employees announcing the decision, CEO David Woodhouse said, "Raising capital has become increasingly difficult for companies in our industry over the last couple of years."
"In this regard, while we had hoped to be able to pursue a significant financing on the back of positive clinical data in 2022 following CATALINA, the clinical data we announced, unfortunately, did not support pursuing such a financing at that time."
CATALINA Phase 2 trial testing NGM's C3-inhibiting antibody in geographic atrophy flunked the primary endpoint, and the biotech's shares took a beating when it unveiled the results in October.
"Ongoing efforts to reduce our other operational expenses will not be sufficient on their own," Woodhouse wrote.
"While our strategy continues to include seeking business development transactions for one or more of our programs, even if we were to succeed in securing a deal or deals this year, we believe a restructuring would still be necessary to arrive at a more sustainable cash burn rate," he wrote.
Price Action: NGM shares are trading flat at $3.96 on the last check Wednesday.

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Clinical Setbacks Prompt NGM Bio Lay Off One Third Of Its Staff, Founder Leaves