Regulus -48.4% as it slashes 60% of workforce to stretch cash

|About: Regulus Therapeutics (RGLS)|By:, SA News Editor

Regulus Therapeutics (NASDAQ:RGLS) has resumed trading and is down 48.4% after hours after announcing a strategic update and restructuring that will see it cutting about 60% of its head count.

In moves to extend its cash runway into 2019, Regulus is pausing recruitment activity for the RG-012 clinical program in Alport syndrome while it talks with Sanofi (NYSE:SNY) to restructure the partnership.

It will also focus preclinical research efforts on its Hepatitis B virus programs.

Regulus expects about $20M in annualized savings, which will stretch cash into the middle of next year.

"I am very disappointed that we need to take these drastic steps to preserve our capital, especially given the significant contributions by our dedicated employees to the progress made toward unlocking the potential of targeting microRNAs," says CEO Jay Hagan.

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