- Battered after a surprising FDA rejection for its lead pipeline program last week, Akebia Therapeutics Inc (NASDAQ:AKBA) has layoffs that are now on the way.
- In a filing with the SEC, Akebia said the FDA issued a partial clinical hold on the drug's pediatric studies.
- As a result, Akebia will suspend all vadadustat studies in children.
- According to the filing, Akebia approved a 42% reduction in its staff. Akebia expects to complete the layoffs rather quickly, noting that the process should be completed by the second quarter.
- The layoffs represent Akebia's effort to "refocus its strategic priorities around its commercial product, Auryxia, and its development portfolio."
- The Company expects to record a one-time restructuring charge of approximately $12 million in Q2 of 2022.
- The reduction in force will result in an approximate $60 million - 65 million reduction in net cash required for operating activities through the end of 2023.
- For Akebia, the layoffs and partial hold also came after the biotech put together $85 million to commercialize vadadustat in a reorganized deal with Vifor Pharma.
- Vifor agreed to an additional equity purchase of $20 million. Further, an accelerated $25 million milestone and $40 million in refundable working capital.
- Price Action: AKBA shares are down 2.49% at $0.56 during the market session on the last check Thursday.
