US-based Rani Therapeutics has announced plans to reduce its workforce by 25% as part of a larger pipeline reprioritisation.
The company has discontinued the development of its RT-101 programme while pausing work on the RT-105 and RT-110 programmes.
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Rani expects this pipeline reprioritisation along with cost reduction initiatives to extend the company’s cash runway into 2025, as per a 1 November press release.
“The initiatives we are announcing today are expected to extend our cash runway, providing us with the resources for important readouts from our RT-102 and RT-111 programmes, as well as development of the RaniPill HC to be Phase I ready,” said Rani’s CEO Talat Imran in the press release.
“While we are discontinuing our RT-101 programme, we aim to continue to develop RT-105 and RT-110 when we have the appropriate resources to do so. Importantly, the collaborations we have signed with Celltrion remain in place.”
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The workforce restructuring will be “substantially” completed by the end of Q1 2024 and is expected to cost approximately $0.3m. Rani has also entered into a lease agreement for an approximately 33,000ft² manufacturing facility to “support late-stage development and partnering”.
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By GlobalDataRani had cash reserves of $60.5m as of 30 September and a net loss of $17m-19m in Q3 2023, as per the 1 November press release. The company has a market cap of $97.46m.
Rani is expecting top-line results from the Phase I trial of RT-111 in Q1 2024. RT-111 combines the company’s RaniPill capsule with a biosimilar of Janssen’s Stelara (ustekinumab).
In January, the US-based company signed a licence and supply agreement with Celltrion for RT-111. The agreement grants Celltrion the first negotiation for the worldwide rights to the drug.
Rani also plans to initiate a Phase II trial for RT-102 in osteoporotic patients in Q4 2023.
