Ar­a­vive warns of pos­si­ble liq­ui­da­tion as it ax­es all clin­i­cal work, lays off 70% of em­ploy­ees

Things are go­ing down­hill fast at Ar­a­vive in the wake of a Phase III flop. As the neg­a­tive re­sults in ovar­i­an can­cer quashed hopes of a quick BLA fil­ing, the Hous­ton biotech has shut­tered all its clin­i­cal pro­grams and laid off 70% of its staff.

Among those be­ing let go is chief op­er­at­ing of­fi­cer Scott Dove. Ar­a­vive re­port­ed a head­count of 23 at the end of 2022.

Ac­cord­ing to the com­pa­ny’s $AR­AV lat­est quar­ter­ly fil­ing, it needs to con­serve cash as it looks for strate­gic al­ter­na­tives or fund­ing to re­vive the de­vel­op­ment of its on­ly drug. And with on­ly $7.8 mil­lion in work­ing cap­i­tal and $18.4 mil­lion in cash and cash equiv­a­lents, time is run­ning out.

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