Allena Pharma sinks after flagging going concern doubts

Allena Pharmaceuticals

11/07/2022 12:06

** Shares of kidney disease drug developer Allena
Pharmaceuticals Inc  ALNA.O  sink ~13% to 20 cents premarket
    ** Among top percentage losers across U.S. exchanges
    ** ALNA flags going concern doubts, adding it may need to
seek an in-court or out-of-court restructuring of its
liabilities [https://bit.ly/3PamMSQ
]
    ** As of June end, co had cash and cash equivalents totaling
about $6.6 mln; co says it does not believe this is enough to
fund operations and capital requirements beyond the next several
weeks
    ** ALNA in March scrapped the late-stage trial of its lead
drug candidate, reloxaliase, on a dour outlook; co expects
preliminary data from two cohorts for its second product
candidate, ALLN-346, in Q3  urn:newsml:reuters.com:*:nL3N2VL3VQ
    ** ALNA is in talks with senior lender Pontifax after it
received written demand from Pontifax to gain control over co's
cash and cash equivalents
    ** ALNA is also in discussions with the contract research
organization (CRO) conducting ALLN-346 over its inability to
repay outstanding obligations; CRO may end further work on
ALLN-346
    ** Stock was down ~61% YTD through last close

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))