Shares of Regado Biosciences (RGDO) have plummeted almost 60% ever since it announced the permanent termination of the enrollment process for its phase III (REGULATE-PCI) study on Revolixys Kit on Aug 25, 2014 (read more: Regado Slumps on Permanent Termination of Revolixys Study).
The termination of the trial on the company’s lead candidate has left Regado in tatters. The absence of a decent pipeline has made matters worse. Reeling under the blow, Regado announced multiple cost cutting measures last week to support its bottom line. Regado announced that it has fired approximately 60% (20 employees) of its workforce. Due to the job cut, the biopharmaceutical company expects to incur related charges of roughly $2 million in the third as well as the fourth quarter of the current year. The company stated that it expects to end the third quarter of 2014 with a cash balance of $61 million.
Apart from workforce reduction, Regado announced that it will channelize its resources to ensure the final closure of the REGULATE-PCI study and analysis of the unblinded database (expected by Dec 31, 2014), diligence activities related to the exploration of business alternatives and compliance activities needed for a good public company. The company will provide more details on its financial position and measures to conserve cash on its third quarter conference call.
Regado carries a Zacks Rank #1 (Strong Buy). Some equally well-ranked stocks in the health care space are Gilead Sciences (GILD), Medivation (MDVN) and Mallinckrodt (MNK). All three stocks sport a Zacks Rank #1 (Strong Buy).
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