Cybin Inc. CYBN CYBN announced Thursday a streamlining plan aimed at maximizing the company’s operating efficiency and allowing it to focus on critical clinical trials.
The biopharmaceutical company has released approximately 15% of its workforce that previously held roles that were not of a clinical priority or were not directly involved with any of the company’s clinical trial initiatives. As a result of the headcount reductions, Cybin expects to generate cost savings from reducing operating expenses.
Based on anticipated cost savings from the streamlining exercise and Cybin’s ongoing and previously announced $35 million at-the-market (“ATM”) equity program, management believes the company will be better positioned for both near-term and long-term success. Cybin anticipates these cost savings will result in a decrease in its historical annual cash burn rate by millions of dollars, while it continues to push forward on all core clinical initiatives.
“The Company has made the prudent decision to evaluate every role within its workforce, including whether certain tasks could be performed more efficiently while ensuring that the Company’s core clinical activities continue to be robustly supported and resourced. We appreciate the significant contributions of our employees and the hard work they performed for the Company and understand the impact that this difficult decision has on them. We are committed to maintaining a lean organization and will continue to make clinical trial execution in support of our proprietary molecules our top priority” stated Doug Drysdale, chief executive officer of Cybin.
Cybin shares were trading 10.74% lower at $0.46 per share at the time of writing Thursday morning.
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