InflaRx N.V. (NASDAQ: IFRX) outlined a comprehensive plan on Thursday aimed at restructuring its operations by reducing costs and streamlining focus toward its lead drug candidate, izicopan. The biopharmaceutical company disclosed intentions to drastically cut back expenditures related to Gohibic (vilobelimab), a treatment for acute respiratory distress syndrome (ARDS) associated with COVID-19 infection, while emphasizing further clinical development of izicopan across indications such as hidradenitis suppurativa (HS) and other inflammatory and immunological disorders.
The restructuring initiative involves a workforce reduction of approximately 30%, with non-essential activities beyond izicopan development either discontinued or significantly curtailed. InflaRx also plans to slash commercial spending and support functions linked to Gohibic, indicating a clear strategic pivot away from broader efforts to commercialize this therapeutic.
Financially, the company anticipates absorbing a one-time restructuring charge close to $7 million associated with these transitions. However, these efforts are expected to result in a leaner cost structure moving forward, allowing InflaRx to extend its cash runway substantially, projecting liquidity through mid-2027.
Despite scaling down resource allocation for Gohibic, the company confirmed ongoing support for the BARDA-sponsored "Just Breathe" Phase 2 platform study evaluating vilobelimab's efficacy in ARDS. InflaRx stated that these changes are unlikely to impact the clinical trial's progression. Additionally, Gohibic will continue to be available for ordering in the United States under its emergency use authorization (EUA), with the company poised to meet demand reactively.
InflaRx is also actively seeking partnership opportunities for Gohibic in both the U.S. and European markets. Plans are underway to engage with the U.S. Food and Drug Administration (FDA) to explore a potential development pathway for vilobelimab in treating pyoderma gangrenosum, a rare inflammatory condition. Such development is anticipated to proceed likely with a strategic partner.
Turning focus to izicopan, InflaRx highlighted promising pharmacokinetic and pharmacodynamic data that suggest a favorable profile and differentiation within the C5a/C5aR immunological pathway. The company is preparing for Phase 2b clinical trials in hidradenitis suppurativa and is actively consulting with the FDA regarding study designs and relevant clinical endpoints.
Beyond HS, InflaRx envisions expanding izicopan's applications into chronic spontaneous urticaria (CSU) and additional inflammatory and immunology (I&I) indications, leveraging existing Phase 2a data. The company recently concluded a low-enrolling cohort studying anti-IgE–refractory CSU and intends to use the data gathered to inform next steps, with further updates expected later in the year.
InflaRx stock reflected these developments, trading down 5.00% to $1.13 during Thursday's session, per Benzinga Pro data. The market reaction follows investor reassessment amid the company's strategic realignment and cost-cutting measures aimed at focusing on izicopan while reducing its exposure to Gohibic-related commercial initiatives.