Oncternal Therapeutics will lay off about 10 workers as it explores “strategic alternatives” that could include asset sales or an M&A.
To reduce operating expenses while it considers “strategic alternatives” for its future, Oncternal Therapeutics is laying off about 10 employees, representing roughly 37% of its workforce, according to a Sept. 12 SEC filing. In connection with that reduction, Salim Yazji will be out as chief medical officer, effective Oct. 1.
In the SEC filing, the San Diego–based clinical-stage company, which focuses on novel oncology drugs, estimated it will incur workforce reduction-related charges of about $1 million. It expects to mostly complete the layoffs in the third quarter.
Also on Sept. 12, Oncternal announced it’s discontinuing clinical trials for two drugs: ONCT-534, its dual action androgen receptor inhibitor for patients with metastatic castration-resistant cancer, and ONCT-808, its ROR1-targeting autologous CAR T program for patients with aggressive B cell lymphoma.
According to the announcement, interim Phase I results for ONCT-534 did not show clinically meaningful disease improvements. Interim Phase I results for ONCT-808 showed anti-tumor activity at all doses, including “a complete metabolic response lasting eight months and long-term persistence of the CAR-T cells, with expected treatment emergent adverse events for a CAR-T therapy.” There was one death from complications of shock at the highest dose of ONCT-808.
The company also noted that it is ceasing all product development activities and is exploring options that could include asset sales as well as a merger, reverse merger or acquisition.
In an Aug. 8 SEC filing, Oncternal reported that as of June 30, it had $21.4 million in cash, cash equivalents and short-term investments and an accumulated deficit of $214.7 million. The company also noted that since inception, it’s had recurring operating losses and negative cash flows from operations. Oncternal stated that it expects to continue to incur net losses “for the foreseeable future” and believes it will need to raise substantial additional capital to accomplish its business plan during the next several years.
