Tokai Pharmaceuticals’ execs have decided that they can no longer afford most of their staff. Just three days after revealing that their prostate cancer drug galeterone had failed a Phase III study, the biotech says it will cut 60% of its staff and reduce its payroll to the equivalent of 10 full time people.
The biotech $TKAI slammed the brakes on its ARMOR3-SV study after the data monitoring committee concluded that the drug proved to be a dud, effectively shredding Tokai’s business plan.
Boston-based Tokai raised $97 million in an IPO during the go-go days of the biotech boom on Wall Street. The lead study looked to establish a benefit for patients with prostate tumors expressing the AR-V7 splice variant.
By the end of the week Tokai had $43 million in cash and a market cap of $28 million. Its stock was crushed on the news, dropping 70%.
“A reduction in force is a very difficult yet necessary step in light of the recent discontinuation of the ARMOR3-SV trial of galeterone in mCRPC,” said Jodie Morrison, the CEO of Tokai.
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