Aligos Therapeutics Inc (ALGS)

[DewDiligence]

ALGS “de-prioritizes” HBV program—reduces workforce 10%:

https://finance.yahoo.com/news/aligos-therapeutics-announces-strategic-reprioritization-210500405.html

Aligos Therapeutics…today announced a portfolio reprioritization. Aligos’ highest priorities will be focused on rapid advancement of its clinical NASH (ALG-055009) and COVID-19 (ALG-097558) programs as well as maintaining its ongoing NASH oligonucleotide research collaborations with Merck…

Additionally, the Company plans to complete the <=48-week (ALG-000184) and single ascending dose (ALG-125755) 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%...

…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.

In other words, the HBV program is getting the axe. After completing the early-stage HBV trials in progress, ALGS will offload these assets (if anyone wants them) or simply shut down the program.

The stock is flattish in the AH session.