Aligos announces portfolio reprioritization of NASH, extends cash runway

Aligos Therapeutics (ALGS) announced a portfolio reprioritization. Aligos’ highest priorities will be focused on rapid advancement of its clinical NASH and COVID-19 programs as well as maintaining its ongoing NASH oligonucleotide research collaborations with Merck & Co(MRK) . Additionally, the Company plans to complete the =48-week and single ascending dose cohorts for its two chronic hepatitis B programs and continue to invest in selected research programs and collaborations with external research organizations. This portfolio reprioritization is being accompanied by a reduction of the Company’s current workforce of approximately 10% and, combined with careful workforce management, including employee attrition and targeted hiring, has resulted in an overall workforce reduction of approximately 25% since the beginning of January 2022.As a result of the portfolio reprioritization, realignment of its workforce, and other cost-saving measures, the Company expects to maintain a strong balance sheet and extend its projected cash runway to the end of 2024. The Company expects to report Q4 and 2022 year-end financial results as well as provide guidance regarding the amount of anticipated one-time charges related to the reprioritization, which we expect to record in Q1 2023, in mid-March 2023. "With such a diverse clinical portfolio, including four drug candidates in or near the clinic, as well as maintaining a strong discovery engine, where we continue to support multiple research collaborations, we determined that Aligos would be best positioned to achieve its business objectives by taking action now to streamline operations, reprioritize its portfolio, and implement certain cost-saving measures, including a reduction in force," said Lawrence Blatt, Ph.D., MBA, CEO and Chairman of the Board at Aligos. "I would like to express my sincere gratitude to the employees who are being affected by this reprioritization. We are grateful for their dedicated service and contributions to Aligos’ mission."