Quince Therapeutics is laying off nearly half of its staff and looking to out-license a preclinical asset almost immediately after selling a portion of its pipeline to Lighthouse Pharmaceuticals.
The pipeline plans were shared after market close Jan. 30 and come only one business day after the biotech, formerly known as Cortexyme, sold off its protease inhibitor portfolio. The layoffs weren’t disclosed in the release, but instead in a related Securities and Exchange Commission document, which reveals a 47% workforce cut as part of a cost reduction plan approved by the company’s board Jan. 24. The percentage could mean about 15 employees will be let go, according to LinkedIn, which lists a total employee count of 32.
The layoffs will start in February and be completed by April, according to the SEC filing. Under the plan, Quince expects to save about $9.5 million in operating expenses for 2023 and incur costs up to $800,000.
Meanwhile, the California-based biotech is also aiming to out-license its bone-targeting drug platform and precision bone growth molecule, dubbed NOV004. Designed to accelerate fracture repair in patients with bone fractures and osteogenesis imperfecta, the preclinical asset is an engineered anabolic peptide that has undergone all studies needed to ask the FDA for permission to test in human trials. Quince just started looking for a buyer and aims to sell off NOV004 by the end of 2023.
The company also intends to funnel capital toward expanding its pipeline through in-licensing and acquisition of clinical-stage assets that target debilitating and rare diseases.
“We are actively seeking partnership opportunities focused around clinical-stage assets in a broad variety of therapeutic areas,” Quince CEO Dirk Thye, M.D., said in the Jan. 30 release. “Supported by a strong balance sheet, optimized cash runway, and highly experienced development team, Quince is well-positioned to execute our plan as we diligently work to identify, assess and complete the in-licensing and acquisition of commercially viable assets.”
The pipeline and workforce updates follow the sale of Quince’s unwanted protease inhibitor portfolio to Lighthouse Pharmaceuticals, which was recently launched by ex-Cortexyme CEO Casey Lynch.
Alongside the biotech’s name change, Quince has funneled its focus to rare diseases after a string of clinical setbacks, including a clinical hold on its Alzheimer’s disease drug atuzaginstat.
As of Dec. 31, 2022, Quince had $94 million in cash, equivalents and marketable securities, which is expected to fund the company into 2028, according to SEC filings.