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Histogenics Shares Drop After Company Says It Is Seeking Strategic AlternativesFont size: A | A | A
5:02 PM ET 12/21/18 | Dow Jones
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4:00 PM ET 12/21/18
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HSGX
0.47 -0.72%
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By Stephen Nakrosis

Shares of pharmaceutical company Histogenics Corp. (HSGX) have fallen over 85% in after-hours trading Friday after it said it was exploring strategic alternatives.

At 4:53 p.m. EST, shares traded down 87.23% at 6 cents per share.

The company said the U.S. Food and Drug Administration had requested additional clinical trials before it would accept the submission of a Biologics License Application for NeoCart, a restorative cell therapy.

The company said "considering the time and funding required to conduct such a trial, Histogenics expects to suspend the development of NeoCart and does not plan to submit a BLA at this time."

Histogenics said it had engaged Canaccord Genuity LLC to assist in implementation of a restructuring plan to reduce costs. The company said the plan may include sales of assets and intellectual properties, business combinations and public and private capital raises.

If the restructuring efforts prove unsuccessful, Histogenics said, it may seek chapter 11 bankruptcy protection, restructure or liquidate.

The company also said it won't proceed at this time with earlier plans to conduct a stockholder meeting to increase its authorized shares and a reverse split.

Write to Stephen Nakrosis at [e-mail]