Small Cap Biotech Vincerx Cuts Third Of Staff

• Cancer-focused biotech Vincerx Pharma Inc (NASDAQ:VINC) would lay off 33% of its staff to get its lead program through two Phase I studies.
• The move comes a little less than two years after Vincerx went public via a SPAC and its stock fell more than 80% in 2022.
• “Reducing our staff was not an easy decision,” CEO Ahmed Hamdy said. “It was the tremendous effort of our Vincerx colleagues that allowed us to execute efficiently, despite the extreme pressures of the pandemic.”
• Vincerx said it is prioritizing Phase 1b VIP152 studies to focus on double-hit diffuse large B-cell lymphoma and chronic lymphocytic leukemia.
• The company will continue to advance the next-generation modular bioconjugation platform. IND filings for VIP236 in 2H22 and VIP943 in 2H23 remain on track.
• Vincerx will cut 33% of its workforce. Streamlining and realigning resources will extend the estimated cash runway into late 2024.
• Analyst Reaction: Chardan Capital analyst Matthew Barcus maintains Vincerx Pharma with a Buy and lowers the price target from $11 to $4.
• Price Action: VINC shares closed at $1.83 on Monday.