Spruce Biosciences, Inc. (NASDAQ:SPRB), a pharmaceutical company with a market capitalization of $18 million, announced the departure of its Chief Medical (TASE:PMCN) Officer, Dr. Ralph William Charlton III, effective December 31, 2024. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics.
Dr. Charlton's exit will see him receive severance benefits including a lump sum payment of $343,200 and nine months of COBRA coverage, contingent on a release of claims. While the company maintains a strong liquidity position with a current ratio of 5.36 and more cash than debt on its balance sheet, InvestingPro data indicates the company is quickly burning through its cash reserves.
Following Dr. Charlton's departure, Spruce Biosciences has appointed Dr. Kirk Ways as the interim Chief Medical Officer starting from Monday. Dr. Ways, 73, has been a member of the company's Board of Directors since June 2021 and brings a wealth of experience from previous roles, including serving as interim Chief Medical Officer of MBX Biosciences and Chief Medical Officer of Nuvelution Pharma, Inc. The company's stock has shown recent momentum with a 7.58% gain over the past week, though its financial health score remains FAIR according to InvestingPro metrics.
Before his industry tenure, Dr. Ways held academic positions, including Director of the Diabetes Center and Vice Chairman for the Department of Internal Medicine at East Carolina School of Medicine. His academic contributions have resulted in over one hundred publications in diabetes and cancer. Dr. Ways holds an M.D. with honors and a Ph.D. in Pharmacology from the University of North Carolina.
The information for this article is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Spruce Biosciences has faced significant developments. The company's drug candidate, tildacerfont, did not meet anticipated outcomes in the CAHmelia-204 trial, leading to downgrades by RBC Capital, Oppenheimer, and JMP Securities.
As a result, Spruce Biosciences has decided to halt the development of tildacerfont and is exploring alternative options. Despite these setbacks, the company remains focused on its ongoing research in major depressive disorder (MDD) with a Phase II trial expected to commence in 2025.
In addition, the company is facing potential delisting from the Nasdaq Stock Market due to not meeting the minimum bid price requirement, although it has been granted an additional 180 days to comply. These recent developments are reshaping the future operations and financial health of Spruce Biosciences. Despite the challenges, the company maintains a strong balance sheet with more cash than debt, though it's currently burning through cash reserves at a concerning rate.
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