Metacrine Inc (NASDAQ:MTCR) will ax half of its staff to conserve cash as it makes a last-stand drug development effort. Its shares are mired deep in penny stock territory after it floated its IPO in 2020 at $13/share.
- While NASH was originally Metacrine's priority, the Company abandoned the program back in October after a toxicology study flagged potential delay. Instead, it pushed their FXR agonist, MET642, into a Phase 2 trial for inflammatory bowel disease.
- Metacrine announced its reorganization while FDA signed off its Phase 2 trial examining MET642 for ulcerative colitis, a form of inflammatory bowel disease.
- While the biotech expects to begin the study sometime in the first half of this year, the Company said restructuring is implementing restructuring to "support ongoing clinical development of MET642 in IBD."
- The biotech is also axing preclinical development of its hydroxysteroid dehydrogenase program.
- The Company held approximately $76.4 million in cash, cash equivalents, and short-term investments, sufficient to fund its current operating plan through 2023.
- Price Action: MTCR shares are up 4.88% at $0.49 during the market session on the last check Friday.
