Wednesday, biopharmaceutical company Metabasis Therapeutics Inc. (MBRX) said it would cut its workforce by 85% or 45 employees, leaving only seven employees remaining, due to difficulty in raising sufficient capital. Metabasis shares plunged nearly 23% in morning trade.
The company warned that it may have to cease operations entirely if capital is not raised in the near term. The job reduction exercise is expected to buy time for the directors to evaluate strategic alternatives, and preserve cash and reduce ongoing operating expenses.
This is the second time in the year that the company has announced job cuts. In January, nearly 43% or 38 jobs were eliminated.
Metabasis' product candidates are at the clinical stage and include MB07811 for the treatment of hyperlipidemia and MB07803 for the treatment of type-2 diabetes. The company is looking to fund its operations through the Phase 2 proof-of-concept clinical trial on MB07811.
Earlier, while announcing first quarter results, the company had said it intended to establish one or more strategic collaborations in the second half of 2009, as well as, to secure research milestones from existing partnerships with Merck and Roche.
Additionally, the La Jolla, California-based Metabasis said it received a letter from Nasdaq Stock Market, for not being in compliance with the continued listing criteria of the exchange. Metabasis has 15 calendar days to submit a plan to regain compliance.
MBRX is trading at $0.28, down or $0.06 or 17.89%, on a volume of about 440 thousand shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.