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ARTICLE | Company News

June 25 Company Quick Takes: Conatus restructuring; plus Almirall-Dermira, Acer, Glenmark and more

June 26, 2019 12:02 AM UTC

Conatus cuts headcount by 40% to extend runway
Conatus Pharmaceuticals Inc. (NASDAQ:CNAT) said it will lay off 40% of its staff and suspend development of caspase 1 inhibitor CTS-2090 in a bid to extend its resources. The company has hired Oppenheimer & Co. as its financial adviser as it begins to evaluate strategic alternatives. It expects to end the year with a net cash balance between $10-$15 million. In March, the company’s lead candidate, emricasan, failed in a Phase IIb trial. Conatus lost $0.63 (69%) to $0.29 Tuesday (see “Conatus Sinks After NASH Therapy Misses Fibrosis Endpoint”).

Almirall exercises European option for Dermira’s dermatitis candidate
Almirall S.A. (Madrid:ALM) paid Dermira Inc. (NASDAQ:DERM) $50 million up front to exercise its option for an exclusive European license to develop IL-13 mAb lebrikizumab in dermatology indications and commercialize it in all indications. Dermira is eligible for $30 million in clinical milestones, up to $85 million in regulatory milestones, plus undisclosed sales milestones and low double-digit to low twenties royalties. Dermira plans to start Phase III testing by year end. ...