Spectrum Pharma restructuring will see 30% job cuts

Shares of US biotech Spectrum Pharmaceuticals (NasdaqGS: SPPI) closed down more than 11% at $1.27 yesterday, after it announced a strategic restructuring.

The company will prioritize its late-stage product opportunities, poziotinib and Rolontis (eflapegrastim), and will deprioritize development activities of its early-stage clinical development and research programs. The company has made these decisions following a detailed review of its operations, portfolio and growth opportunities, and will focus its resources accordingly.

“The decision to restructure the organization is necessary to focus on our advanced clinical programs that will drive our future growth. I would like to express my appreciation to our colleagues who are affected by this decision and are leaving Spectrum. We are grateful for their dedication and their contributions to advancing our mission,” said Tom Riga, president and chief executive of Spectrum Pharmaceuticals, adding: “The changes we are implementing are expected to result in a reduction in operating expenses and the extension of the company’s cash runway into 2023.”