GERMANTOWN, Md. - Barinthus Biotherapeutics plc (NASDAQ: BRNS), a clinical-stage biopharmaceutical company trading at $1.14 per share, announced a strategic shift to prioritize the development of its immunotherapeutic candidate VTP-1000 for celiac disease, with Phase 1 data expected in mid-2025. Concurrently, the company is postponing further clinical development of VTP-300 for chronic hepatitis B (CHB) until a partner is found. According to InvestingPro data, the stock has seen a significant decline of over 68% in the past year, suggesting investors' cautious stance on the company's strategic decisions.
The company's restructuring includes a significant reduction in workforce by roughly 65% and the anticipated closure of its U.K. site, as operations consolidate in Germantown, Maryland. This move is projected to extend Barinthus Bio's cash runway to the start of 2027. InvestingPro analysis indicates the company holds more cash than debt on its balance sheet, though it's currently burning through cash rapidly. For deeper insights into the company's financial health and additional ProTips, subscribers can access the full analysis on InvestingPro.
As part of the reorganization, two executive leadership team members, Chief Operating Officer Graham Griffiths and Chief Financial Officer Gemma (EGX:ECAP) Brown, will depart from the company. Further details regarding the restructured team will be announced in the future.
Barinthus Bio also provided a financial update, with cash, cash equivalents, and restricted cash expected to be $112 million as of December 31, 2024. The company believes that the anticipated cost savings from the restructuring will fund operations into early 2027. With a current market capitalization of approximately $46 million and an InvestingPro Financial Health Score rated as 'FAIR', the company maintains a strong current ratio of 8.93, indicating solid short-term liquidity position despite operational challenges.
Upcoming milestones for 2025 include the release of single ascending dose data from the AVALON Phase 1 clinical trial for VTP-1000 in celiac disease, initiation of a multiple ascending dose portion of the Phase 1 trial in the third quarter, and results from the Phase 2b HBV003 clinical trial for VTP-300 in CHB and the Phase 1 PCA001 trial for VTP-850 in prostate cancer, both expected in the second quarter.
Barinthus Bio's CEO, Bill Enright, expressed pride in the team's achievements and gratitude for their contributions, particularly highlighting the efforts of Brown and Griffiths. The strategic pivot aims to maximize shareholder value by leveraging the company's SNAP-Tolerance Immunotherapy (SNAP-TI) platform to address autoimmune diseases.
The information in this article is based on a press release statement from Barinthus Biotherapeutics.
In other recent news, Barinthus Biotherapeutics continues to make significant strides in its clinical trials. The company recently reported promising results from the Phase 2b HBV003 trial of VTP-300 for chronic hepatitis B (CHB). The trial, which enrolled 121 subjects, showed positive outcomes, with 24 participants eligible for nucleos(t)ide analogue (NUC) discontinuation, a crucial step in CHB treatment. Furthermore, eight subjects achieved HBsAg loss, indicating a positive immune response. The combination therapy of VTP-300 and low-dose nivolumab was well-received, with no serious adverse events reported.
Following these developments, H.C. Wainwright maintained its Buy rating on Barinthus Biotherapeutics shares, reflecting confidence in the potential of VTP-300 as part of a functional cure regimen for CHB. In addition to the HBV003 trial, the company completed patient enrollment for two key clinical trials, HBV003 and PCA001, focusing on treatments for chronic hepatitis B and prostate cancer respectively.
In other recent developments, Barinthus Biotherapeutics launched the Phase 1 AVALON trial for VTP-1000, an investigational immunotherapy for celiac disease. The company also underwent internal restructuring, promoting Graham Griffiths to Chief Operating Officer and welcoming Dr. Leon Hooftman as its new Chief Medical (TASE:PMCN) Officer. Additionally, a 25% workforce reduction is expected to extend the company's cash runway into the second quarter of 2026.
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