NexImmune, the immunotherapy biotech, is once again in the spotlight for layoff as it nears the end of its financial runway. To safeguard its future and invest in its promising nanoparticle platform, the company is slashing its workforce by half.
In the ever-evolving landscape of biotechnology, NexImmune has undergone a series of strategic shifts in the past year. Initially, the company halted enrollment in a multiple myeloma trial to prioritize two cell therapies. However, it later pivoted towards a different injectable nanoparticle platform, leaving cell therapies behind. This strategic maneuver resulted in approximately 30% of its workforce being let go about 10 months ago.
Today, NexImmune is once again streamlining its team, reducing it to just 22 full-time employees from the current count of 47, and a significant drop from the 74 employees it had in March 2022. Among those departing is the Chief Financial Officer, John Trainer, while Timothy Stover, NexImmune’s corporate controller, steps into the role of principal financial officer.
In a statement, NexImmune’s CEO, Kristi Jones, emphasized that these layoffs are aimed at preserving the core capabilities essential for advancing novel therapeutic candidates and validating functional antigen-specific T cell responses. Simultaneously, this strategic move provides the company with added flexibility in managing its business.
As of June, NexImmune held $16.3 million in cash, a sum projected to sustain its operations until the fourth quarter. While the layoffs are anticipated to reduce costs and extend the company’s cash reserves, the announcement did not provide an updated financial runway projection. The reduction in the workforce is expected to incur approximately $2.3 million in severance pay and related termination benefits.
In the coming months, NexImmune’s catalysts appear somewhat limited in their potential to drastically alter investor perceptions. Key milestones include the release of additional preclinical data on the nanoparticle platform. Over the past year, NexImmune’s stock price has dipped below the $1 mark and experienced a consistent downward trend, plummeting by 81% to a mere 22 cents. This reinforces the critical importance of these strategic decisions for NexImmune’s future trajectory in the biotech landscape.