- Clarus Therapeutics Holdings Inc (NASDAQ:CRXT) has implemented a 40% reduction in staff as it evaluates strategic alternatives and terminates certain research and development activities.
- With $19.2 million in cash & cash equivalents and $40.5 million of senior notes payable, the company is pulling out all the stops to stay afloat.
- Clarus also decided to combine the positions of chief financial officer and chief administrative officer. As a result, CFO Richard Peterson will leave the company while CAO Steven Bourne picks up his job.
- The company sells an oral testosterone replacement drug, Jatenzo.
- Management believes the existing cash balance and sales will fund current estimated operating expenses (after implementing headcount reduction) and capital expenditure requirements into September 2022.
- The company noted it might have to stop marketing Jatenzo and file for bankruptcy unless it can restructure its indebtedness and find new capital.
- Robert Dudley, Clarus president & CEO, blames the moves — even as Jatenzo sales have grown — on the challenging financing environment.
- Clarus expects severance and related expenses for the layoffs to add up to $1.1 million.
- Price Action: CRXT shares are down 26.5% at $0.2081 on the last check Friday.
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