Rallybio said Tuesday that it will be laying off 19 employees, or 45% of its workforce, as it looks to direct resources towards advancing its Phase II-ready clinical stage programmes, RLYB212 and RLYB116. Company shares jumped 20% on the news.
"We believe that these difficult, but necessary decisions to streamline our operations and align resources are critical to extend our cash runway…and put us on a path toward long-term success," said CEO Stephen Uden. The company estimates these actions will extend its cash runway into mid-2026.
Last year, the company said preliminary data and the company's own clinical pharmacology modeling predictions supported a once-monthly dosing regimen for the planned Phase II study.
Meanwhile, RLYB116 is a once-weekly, subcutaneously injected complement C5 inhibitorcomplement C5 inhibitor in development for patients with complement-mediated diseases. Rallybio says it is "encouraged" by recent work on its manufacturing process that suggested the possibility of enhancing tolerability with higher doses of RLYB116.
Rallybio added that the actions are expected to fund its preclinical programme activities through to key 2024 milestones. These candidates include the MTP-2 inhibitorRLYB331 (KY1066), acquired via a deal with Sanofi, with data expected in the first half of 2024. The company is also working on an ENPP1 inhibitorENPP1 inhibitor with Exscientia, and the C5 inhibitor RLYB114 with EyePoint Pharmaceuticals.