Gritstone bio Reveals Approximately 40% Reduction Of Its Workforce; Says Lack Of Near-Term Funding Necessitated This Difficult Step
Portfolio Pulse from Benzinga Newsdesk
Gritstone bio announced a 40% reduction in its workforce due to a lack of near-term funding, following a delay in the CORAL Phase 2b study which led to the loss of anticipated external funding starting in 1Q 2024.
February 29, 2024 | 9:14 pm
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Gritstone bio's workforce reduction by 40% due to delayed CORAL Phase 2b study and subsequent loss of anticipated funding may negatively impact investor confidence and stock price.
The announcement of a significant workforce reduction typically signals financial distress or operational challenges, which can lead to negative investor sentiment. The specific mention of delayed external funding tied to the CORAL Phase 2b study exacerbates concerns about Gritstone bio's short-term financial health and its ability to continue operations without disruption. This situation is likely to result in a negative short-term impact on GRTS's stock price as investors reassess the company's prospects.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100