Jasper Therapeutics’ dud drug lot has cost half of the biotech's employees their jobs.
Days after reporting a blow to a study, the company has revealed plans to lay off staff, part ways with its chief medical officer and halt work outside of its lead indication.
California-based Jasper ended March with 60 full-time employees. The biotech is reducing its workforce by around 50%, incurring charges of around $2 million in the process, according to a July 9 press release.
In addition, Edwin Tucker, M.D., is departing from the role of chief medical officer at the start of next month. Jasper has asked Daniel Adelman, M.D., a member of its scientific advisory board, to take on the role on an acting basis.
The slimmed-down organization will focus on the development of briquilimab in hives, known medically as chronic spontaneous urticaria (CSU). Jasper is stopping trials in asthma and severe combined immune deficiency, while also pulling the plug on investigator-sponsored and preclinical studies, the company said in the release.
The biotech has further dropped plans to start an additional mast cell-focused clinical development program this year.
Jasper warned cost-cutting measures, including a potential restructuring, were coming when it shared bad news about its phase 1b/2a CSU trial on Monday. The biotech found patients who received products from one lot of briquilimab didn’t experience the expected response to the KIT-targeting antibody.
The dud batch immediately sank a separate trial of briquilimab in asthma and dialed up the pressure on the cash-strapped biotech. Jasper ended March with $48.8 million, a sum it warned investors would fail to fund operations through the next 12 months.
Jasper said the layoffs will extend its cash runway, but it didn’t say how long its money will last under the new spending plan. The biotech is aiming to share more data from its phase 1b/2a trial and open-label extension studies this year.
Shares in Jasper fell 4% to $2.90 in premarket trading, adding to losses the stock suffered on Monday.