First Wave BioPharma down over austerity measures

GridAI Technologies

02/05/2022 12:49

** Shares of drug developer First Wave BioPharma  FWBI.O 
fall ~37% to $0.39 premarket
    ** On Friday after market, co said it will initiate
austerity measures to conserve capital  urn:newsml:reuters.com:*:nGNX3dy1SJ
    ** Decision taken after co's experimental treatment for
COVID-19-related gastrointestinal infections failed to meet main
goal of a mid-stage study and over ongoing volatility in the
biotechnology sector
    ** Measures include 20% reduction in headcount and closure
of co's West Coast office and facility in Langlade, France
    ** FWBI also intends to defer certain obligations, including
payment obligations related to acquisition of First Wave Bio Inc
    ** Stock down ~57% this year, as of last close

 (Reporting by Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))