Failed Nivalis pares down to a skeleton crew as it launches a salvage operation
Back at the end of November, little Boulder, CO-based Nivalis Therapeutics hit a clinical land mine and saw its shares explode, in a bad way, as its lead drug flopped in an effort to see if it could help cystic fibrosis patients.
Now, with its back up against a wall and Wall Street in a black mood regarding clinical failure, CEO Jon Congleton and some two dozen staffers are being dismissed as the 5 survivors go out in search for a viable “strategic alternative.”
The company has about $45 million in cash and a valuable public listing $NVLS to play with, the kind of attractions that can make for a reverse merger during a salvage operation like this. CMO David Rodman is among the layoffs.
Howard Furst, chairman of the board of directors, said:
“Nivalis is committed to maximizing shareholder value by preserving the Company’s cash, and unfortunately this necessitates the announced restructuring.”