On announcing its quarterly results today, Altus Pharmaceuticals said the company will not be able to fund its operations beyond Q3 if it's unable to secure cash soon.
This comes after the Waltham, MA-based developer cut 70 percent of its staff and reduced development operations in a restructuring that focused its resources on ALTU-238, a growth hormone deficiency treatment currently in Phase II development. The realignment cost the company $5.1 million. Thanks to those research and development cutbacks, Altus has managed to reduce its burn rate, reporting a net loss of $4.9 million for Q2, compared with the $25.3 million loss during the same period last year. To further cut costs, Altus also consolidated its ops to one facility last month.
But that wasn't enough. As of the end of the Q2, Altus had $8.1 million on hand, which will only see the company through the end of the quarter if it's unable to partner or strike a deal for its one candidate. "As a result of our current cash position and in order to continue operating the company, Altus needs to raise additional capital before the end of September," CEO Georges Gemayel (photo) said in a statement.
- here's the Altus release