Aquinox Pharmaceuticals Inc. (NASDAQ:AQXP) shares slumped 5.5% in afternoon trading today after it announced it has approved a restructuring plan to reduce operating costs.
Shares were at US$2.43 on Tuesday, tumbling more than 85% in recent weeks on the back of disappointing clinical trial results from the company's Phase 3 LEADERSHIP 301 clinical trial. The company announced last month that the group’s cystitis drug failed to meet its main goal.
The treatment, oral rosiptor (AQX-1125), did not show a statistically significant reduction in bladder pain, according to the company, which is headquartered in Vancouver, Canada.
The company announced Tuesday that it has halted all further development activities with rosiptor.
Under the new restructuring plan, the company has reduced its workforce by 30 employees and closed its office in San Bruno, California.
In connection with the restructuring, the company said that it will incur aggregate restructuring charges of approximately $2.5M related to one-time termination severance payments and other employee-related costs and the shut-down of its San Bruno office.
The firm said the majority of the cash payments related to the personnel-related restructuring charges will be paid during the third quarter of 2018, with the remainder to be paid during the fourth quarter of 2018.
Shares of Aquinox were at US$2.43 in afternoon trading on Tuesday.