Facing financial challenges, IN8bio is looking to preserve cash resources through a pipeline prioritization and layoffs at its New York City and Birmingham, Alabama, sites.
Just weeks after an Aug. 8 SEC filing that noted recurring losses, negative operating cash flows and a need for additional capital, IN8bio is laying off nearly half of its workforce. The clinical-stage biopharma company announced the workforce reduction on Sept. 4 as part of a plan to preserve its cash resources, which also includes a pipeline prioritization.
According to a Sept. 4 SEC filing, IN8bio is reducing its workforce from 37 to 19 full-time employees at its New York City and Birmingham, Alabama, sites, effective Sept. 4. In addition, the executive management team and board agreed to an 11% cash compensation cut, effective Sept. 1. IN8bio expects to incur $300,000 in workforce reduction costs in the third quarter.
According to the company’s announcement, the pipeline prioritization includes focusing on “generating robust clinical data” from INB-100 in an investigator-sponsored Phase I clinical trial for acute myeloid leukemia and suspending the development of glioblastoma candidate INB-200.
Patients in the Phase I trial of INB-200, where treatment has concluded with up to six repeat doses, will continue to be monitored. IN8bio had been actively enrolling the Phase II INB-400 trial. Existing patients will be monitored while further enrollment is put on hold. IN8bio plans to seek partners for the solid tumor program.
In the Aug. 8 SEC filing, IN8bio stated that since inception, it has not generated product revenue and has incurred net losses and negative cash flows from operations. The company reported an accumulated deficit of $108.4 million as of June 30 and a net loss of $17.2 million for the six months ending June 30. The $10.2 million in existing cash recorded as of June 30 is only expected to fund projected operating expenses and capital expenditure requirements into January 2025. IN8bio is working to raise additional capital.
Later in the filing, the company stated, “If additional capital is not available on a timely basis, or at all, the company will have to significantly delay, scale back or discontinue its research and development programs. If the company becomes unable to continue as a going concern, it may have to terminate its operations and dispose of its assets and might realize significantly less than the values at which they are carried on its condensed financial statements.”
