Deciphera Pharmaceuticals Inc (NASDAQ: DCPH) will undergo a corporate restructuring to eliminate 35% of its workforce and end a Phase 1/2 program for solid tumors.
- Deciphera will implement an organizational restructuring that will result in a workforce reduction of approximately 140 positions. The restructuring is expected to affect U.S. employees across all areas of the organization.
- The Company said it would focus resources on two candidates, vemseltinib and DCC-3116.
- Vemseltinib is in Phase 1/2 for tenosynovial giant cell tumor, and DCC-3116 is in Phase 1 for RAS/RAF mutant cancers combined with Mekinist (trametinib).
- Deciphera is also streamlining its U.S. commercial operations. The Company will keep a limited commercial presence in Europe to commercialize Qinlock (ripretinib) in France and Germany.
- Further clinical development of Qinlock will be discontinued, including the Phase 1b/2 MEK combination study, which was planned to start in Q4 of 2021.
- Qinlock is approved in the U.S. as a fourth-line treatment for gastrointestinal stromal tumors.
- The rebastinib program, which was expected to enter a Phase 3 study next year in patients with platinum-resistant ovarian cancer, has been discontinued.
- Deciphera had cash, cash equivalents, and marketable securities of $392 million as of September 30, and the changes will extend its cash runway into 2024.
- The Company expects to recognize a one-time cash charge in the fourth quarter of approximately $32 million.
- Read Next: Why Did Deciphera Stock Plunge 70% Today?
- Price Action: DCPH shares are up 8.05% at $8.32 during the market session on the last check Tuesday.
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