Cyteir Therapeutics cuts workforce by 70%, JPM downgrades rating

Cyteir Therapeutics

20/01/2023 13:31

** Shares of cancer drug developer Cyteir Therapeutics Inc
 CYT.O  fall 9.2% to $1.39 premarket
    ** Company says it will be reducing its workforce by ~70%
and defer research and development activities in certain areas
to extend cash runway into 2026
    ** Company had 40 full-time employees, as of Dec. 31, 2021
    ** Cyteir estimates severance charges of $2.5 mln-$3.0 mln,
most of which to be incurred in Q1
    ** Company to prioritize ovarian cancer combination therapy
after noting early positive results in study; early-stage data
expected in mid-2023
    ** Brokerage J.P.Morgan downgrades CYT to "neutral" from
"overweight", saying ovarian cancer activity needs to be proven
out in later-stage trials before substantial credit can be
ascribed by the Street
    ** 2 of 4 brokerages rate the stock "buy" or higher, 2
"hold"; median PT $4 - Refinitiv
    ** Stock fell 74% in the last 12 months
 (Reporting by Aditya Samal)
 ((Aditya.Samal@thomsonreuters.com))