Rubius Therapeutics initiating cost-saving measures

Shares of Massachusetts, USA-based Rubius Therapeutics (Nasdaq: RUBY) closed down 13% on Tuesday and fell a further 6% to $0.87 pre-market today, after it announced plans to restructure the company and align resources to advance its next generation red blood cell-based cell conjugation platform.

Rubius, which went public in 2018, with an initial public offering (IPO) that grossed $277 million, is developing an entirely new class of cellular medicines, trade-marked Red Cell Therapeutics, for the treatment of cancer and autoimmune diseases. To enable continued investment in the new platform, the company is restructuring its business and implementing a series of cost-saving measures, which extends the company’s cash runway until the end of 2023.

These measures include the implementation of a 75% reduction in work force, primarily focused on clinical development, manufacturing and general and administrative. Rubius will also discontinue its ongoing Phase I clinical trials of RTX-240 and RTX-224 for the treatment of advanced solid tumors, and will explore the sale of its manufacturing facility in Smithfield, Rhode Island.