On January 1, 2024, AlloVir Board Approved Reduction Its Workforce By Approximately 95% Of Current Employee Base To Reduce Costs And Preserve Capital - Filing
Portfolio Pulse from Benzinga Newsdesk
AlloVir's Board has approved a drastic workforce reduction of approximately 95% to cut costs and preserve capital, following the discontinuation of its three global Phase 3 posoleucel studies. The reduction is set to occur mainly in Q1 2024, with expected completion by April 15, 2024. AlloVir anticipates incurring about $13 million in restructuring charges due to employee termination costs, predominantly within Q1 2024.
January 04, 2024 | 10:27 pm
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AlloVir is significantly reducing its workforce by 95% to conserve funds following the termination of key clinical studies. The company will incur about $13 million in restructuring charges, which may impact its financials in the short term.
The workforce reduction is a direct consequence of AlloVir's decision to discontinue significant clinical studies, indicating a major strategic shift and potential issues with its product pipeline. This could lead to investor concern about the company's future prospects and financial stability, likely resulting in a negative short-term impact on the stock price. The high restructuring costs will also affect the company's financials, although the long-term effects may include reduced operational costs.
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