By Stephen Nakrosis
Clarus Therapeutics Holdings said Thursday it was reducing its headcount, evaluating strategic alternatives and terminating certain research and development activities.
The maker of testosterone-replacement drug Jatenzo also said Steve Bourne, the company's chief administrative officer and its former chief financial officer, is succeeding Ric Peterson as CFO. Clarus hired Mr. Peterson as finance chief in February 2021.
As of June 30, Clarus had cash and cash equivalents of $19.2 million and an accumulated deficit of $347.2 million, the company said.
Unless it can restructure debt and obtain capital, Clarus said, it may seek bankruptcy protection or liquidate some or all assets. "These matters raise substantial doubt about our ability to continue as a going concern," the company said.
Clarus said its management believes its cash and cash equivalents, along with revenue from sales of Jatenzo, will fund operations into September.
The company said it plans to reduce its workforce by 40% and expects to complete the reductions this month.
Clarus terminated its agreement with HavaH Therapeutics for the development of CLAR-121, combining testosterone and anastrozole, for the treatment of inflammatory breast disease and certain forms of breast cancer, the company said.
"It is important for us to make certain strategic changes to our business due to the difficult financing environment we face," Dr. Robert Dudley, the company's president and chief executive, said.
After the bell, Clarus reported a second-quarter loss per share of 24 cents on revenue of $4.05 million. The company also said total prescriptions for Jatenzo were up 23% sequentially and 72% year-over-year.
Jatenzo, the company's first commercial product, is a treatment for adult men who have low or no testosterone levels due to certain medical conditions, Clarus said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
$(END)$ Dow Jones Newswires
August 18, 2022 16:51 ET (20:51 GMT)
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