Apollomics execs oversee layoffs to conserve funds

Apollomics, a Chinese-American biotechnology company, is making significant adjustments to extend its financial runway into the third quarter of 2025. Despite ending the previous year with enough funds to sustain operations through the first quarter of 2025, the company is now implementing several strategic changes to stretch its dwindling resources and avoid potential financial difficulties.

At the forefront of these changes is a leadership shakeup. Apollomics' CEO, Dr. Guo-Liang Yu, announced that two key executives, co-founder and president Dr. Sanjeev Redkar, and Chief Medical Officer Dr. Peony Yu, will be transitioning to consulting roles by August. Both Redkar and Yu are among the company's largest shareholders. Their departure is part of a broader effort to streamline operations and reduce overhead costs. Additionally, the company, which had 45 full-time employees at the end of 2023, disclosed that other staff members would also be leaving.

Alongside these leadership changes, Apollomics is also refining its clinical development strategy. The company had been conducting a phase 2 trial of vebreltinib, a c-MET inhibitor, in patients with various forms of MET-altered non-small cell lung cancer (NSCLC). However, the trial will now focus exclusively on patients with MET amplification, a subset of the disease with significant unmet medical needs that can be effectively addressed by MET inhibition. According to Dr. Yu, this strategic refocus aims to use the company's resources more efficiently and generate the necessary clinical data to support regulatory filings.

The revised clinical strategy, coupled with other cost-saving measures within the NSCLC trial and additional layoffs, is expected to result in substantial reductions in operating expenses. Apollomics also completed a study in China, further contributing to the cost-saving efforts. These combined actions are projected to extend the company's cash reserves, allowing it to fund operations until the third quarter of 2025.

Despite these efforts, Apollomics' financial woes are evident in its stock performance. Over the past year, the company's share price has plummeted nearly 97%, starting the year at close to a dollar and dropping to just 19 cents by the Tuesday closing price.

In summary, Apollomics is undertaking a series of strategic changes to extend its financial viability amid dwindling cash reserves. This involves significant leadership changes, a narrow focus on a critical clinical trial, and various cost-reduction measures. While these initiatives are aimed at ensuring the company's sustainability, the dramatic decline in its share price underscores the challenging road ahead.