The company said the move will enable it to focus its resources on the advancement of HspE7 for human papillomavirus (HPV)-related diseases. As a result of the restructuring, Stressgen will reduce its workforce by approximately 49% from 77 to 39 employees, and redirect its research efforts in order to reduce annual cash expenditures.
As part of the restructuring, the company will consolidate its US offices by closing the Collegeville, Pennsylvania facility by year-end. The restructuring activities are expected to cut the company’s baseline burn rate over time by around C$5 million per year.
Going forward, Stressgen will dedicate its strategic and financial resources to support the further advancement of HspE7. All R&D activities not related to the HspE7 program will be deferred and the company will accelerate its efforts to form partnerships for the compound.