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Finance Watch: With Limited Fundraising Options, Biotechs Restructure To Extend Cash Runways

A Closer Look At Recent Layoffs And Strategic Updates

 
• By Mandy Jackson

Mereo will reduce its headcount by 40% to focus on its lead programs while NeuBase revealed a 60% workforce reduction to extend its cash runway. Also, Invivyd (formerly Adagio), Greenlight and BioMarin announced job cuts, while Otonomy and others planned strategic shifts. 

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• Source: Shutterstock

Bogged down by an ongoing spat with its largest shareholder and a share price that continues to flirt with penny stock territory, Mereo BioPharma Group plc announced an updated operating plan on 18 October that is designed to maximize shareholder value. The plan, which is meant to make Mereo’s £76m ($86m) in cash last into 2026, will focus the company’s resources on its two lead assets and results in a 40% reduction in headcount.

London-based Mereo trades on the Nasdaq in the US and its stock price has wobbled above and below the $1 mark since the beginning of 2022, peaking at $1.73 in...

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