Is GTx Inc (NASDAQ:GTXI) Short Of Funds?
On Tuesday, GTx, Inc (NASDAQ:GTXI) cut 60% of its workforce. It has notified 53 employees that they will be asked to leave the company. The company has been in efforts to cut costs after it announced its failed drug-trials in August and is now trying to conserve its cash-reserves.
The company’s vice-president and Chief Legal Officer, Henry Doggrell said that until such as point that they have some more clarity about their plan of action, they are downsizing the workforce in an effort to conserve cash. This will help them move forward once the company has more regulatory clarity.
With this workforce cut, there will now be only around 35 employees in the company. On 19 August, the company had announced that the PhaseIII clinical trials of enobosarm had failed to meet the benchmarks that had been set with the United States Food Drug Administration. This drug was being tested in the treatment of muscle-wasting in patients suffering from lung cancer.
In Tuesday’s trading, GTx, Inc (NASDAQ:GTXI) dropped by 7.16%. The shares opened at a price of $1.79, climbed to an intraday high of $2.09 and dipped to a close of $1.88. Approximately 1.79 million shares were traded on Tuesday while an average volume of 2.33 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $1.31 and its 52-week high is $2.33. The company has a market capitalization of $118.79 million.
About the company
GTx, Inc (NASDAQ:GTXI) is a bio-pharma company. It is involved in the development of selective androgen-receptor modulators. These drugs have the potential to prevent and treat muscle-wasting in patients suffering from cancer as well as other musculoskeletal-wasting or muscle-loss conditions such as sarcopenia. It is conducting the POWER-1 and POWER-2 pivotal PhaseIII clinical-trials in which they are evaluating enobosarm for prevention and treatment of muscle-wasting in patients suffering from advanced non small cell-lung cancer.