Immune Pharma restructuring sees likely spin-out

US biotech firm Immune Pharmaceuticals (Nasdaq: IMNP) today announced a major corporate restructuring with the objective of prioritizing and segregating its R&D efforts on a focused set of products in inflammatory disease and dermatology and strengthening its financial position.

Immune’s shares were down 5.1% at $3.35 by mid-morning, having dropped as much as 10% in early trading, after the company also announced that, on April 18, it had received written notice from the Listing Qualifications Department of The Nasdaq Stock Market that the company does not comply with Nasdaq's filing requirements for continued inclusion because it had not yet filed its Form 10-K for the year ended December 31, 2016. The company is working to complete the 2016 Form 10-K and will file it as soon as practicable.

In line with this prioritization, the board of directors authorized Dr Daniel Teper, who has tendered his resignation as chief executive of Immune with immediate effect, to lead the company's oncology business within the Cytovia subsidiary and to pursue a possible spin-off of Cytovia into a separate, stand-alone company independent from Immune.