Gamida Cell Ltd. shares were down 30%, to 94 cents, in Monday morning trading after the biopharmaceutical company reported that its funding would only be sufficient through the third quarter of this year pending plans to reduce headcount and operations.
In order to reduce expenses and extend cash runway through the third quarter, the cell therapy-focused company plans to reduce its staff by 17%, discontinue development of its preclinical NK cell therapy candidates, and close its operations in Jerusalem and centralize operations in Kiryat Gat.
The company plans to prioritize the launch of its leading product candidate, omidubicel, which has historically struggled to secure adequate funding due to macro challenges, ahead of a May 1 target Prescription Drug User Fee Act action date.
Gamida Cell reported total cash and cash equivalents of $64.7 million as of Dec. 31, 2022.
The company reported a net loss of $79.4 million, or $1.24 per share, in 2022, compared with $89.9 million, or $1.52 per share, in 2021.
Shares are down 33% since the start of the year and 78% since the same time a year ago.