Neuralstem plans reorganization
Neuralstem, a biopharmaceutical company focused on the development of central nervous system therapies based on its neural stem cell technology, announced a corporate reorganization to further align the company's resources on advancing the NSI-189 neurogenic small molecule program, currently in a phase II clinical trial for the treatment of major depressive disorder, and to continue to pursue collaborations for the NSI-566 stem cell therapy program that will expedite clinical development.
"This reorganization is necessary to efficiently allocate our resources on the company's refocused strategy thereby creating value for all stakeholders," said Rich Daly, Neuralstem CEO. "Taking these steps will enable us to continue to execute on our clinical development plan for NSI-189 while retaining our core proprietary stem cell technology. Additionally, I would like to express my gratitude to those members of our team affected by the action. Our entire team has worked with passion to develop therapeutic alternatives for people suffering with challenging CNS afflictions. We are proud of the work they have done to bring hope and answers to patients, their families and caregivers."
Neuralstem announced the implementation of a refocused clinical and corporate strategy in January 2016. The company's refocused strategy emphasizes its commitment to prioritize the small molecule platform, undertake business development efforts to secure alternative funding and partnerships for its stem cell assets and to enhance the company's visibility in the capital markets. Accordingly, the corporate reorganization includes a workforce reduction across all divisions that will result in significantly lower operating expenses while retaining the expertise needed to implement the company's refocused strategy.