- Orphazyme A/S's (NASDAQ:ORPH) board of directors has called for a court-mediated restructuring, prompting the second round of layoffs in less than a year.
- The in-court restructuring will determine whether any operations can continue if the Company can raise any capital or if it is prudent to sell all or some parts of its assets.
- In June, Orphazyme axed two-thirds of its workforce.
- Orphazyme recently closed its commercial business in the U.S., U.K., and Germany, and it also plans to delist from Nasdaq, likely effective by the end of March.
- In late March 2021, Orphazyme announced its lead asset, arimoclomol, failed to improve disease progression in a phase 2/3 trial for inclusion body myositis, a progressive muscular disorder.
- In May, the same asset failed to prove any benefit for amyotrophic lateral sclerosis patients in a phase 3 trial.
- After FDA rejection for arimoclomol, EMA's advisory committee adopted a negative trend vote on arimoclomol application.
- Arimoclomol was initially licensed from CytRx Corp (OTC:CYTR) in 2011 for $150,000 in upfront cash plus $150 million in royalty payments.
- In a 2019 release, CytRx said it was slated to earn $10 million should arimoclomol be approved in the U.S. and Europe.
- Price Action: ORPH shares are down 39.40% at $0.76 during the market session on the last check Friday.
