MALVERN, PA — Galera Therapeutics, Inc. (Nasdaq: GRTX) revealed this week that its Board of Directors has approved a Plan of Liquidation and Dissolution, contingent on stockholder approval. A special meeting for stockholders to vote on the plan is scheduled for around October 17, 2024.
If the plan receives approval, the company will file for dissolution under Delaware law and distribute any remaining cash to stockholders, including proceeds from potential sales of pipeline assets. Galera aims to complete the wind-down of its operations and settle its liabilities before distributing the remaining funds. The Board retains the discretion to delay or cancel the filing if necessary.
“Following extensive consideration of potential strategic alternatives for the Company for close to a year and in order to maximize stockholder value, the Board of Directors has unanimously voted to approve and recommend for the stockholders to approve the Plan of Dissolution,” said Mel Sorensen, M.D., President and CEO of Galera Therapeutics. He also expressed gratitude to patients, clinical trial staff, employees, the Board, and investors for their support.
The company had engaged Stifel, Nicolaus & Company, Inc. to explore strategic options but found no suitable alternatives. Galera will continue to seek potential sales of its pipeline assets, with any proceeds benefiting stockholders.
In a bid to reduce costs, Galera will reduce its workforce to three employees by August 31, 2024. This includes eliminating the positions of Chief Financial Officer, held by Chris Degnan, and Chief Legal & Compliance Officer, held by Jennifer Evans Stacey. Sorensen will remain as President and CEO during the transition, with Development Specialists, Inc. assisting in the wind-up process. Degnan and Stacey are expected to continue as consultants to support the dissolution.
Financial results for the second quarter of 2024 highlighted a significant reduction in expenses. Research and development costs fell to $1.4 million from $7.6 million in the same quarter of 2023, driven by reduced development costs and workforce reductions. General and administrative expenses decreased to $2.8 million from $9.2 million, primarily due to the cessation of commercial preparations and medical affairs activities.
Galera reported a net loss of $4.1 million, or $0.07 per share, for the second quarter of 2024, compared to a net loss of $20.7 million, or $0.48 per share, in the same period in 2023.
As of June 30, 2024, the company had $10.7 million in cash and cash equivalents. Galera expects this will be sufficient to cover operating expenses, including dissolution costs, for at least the next twelve months.
The dissolution plan marks a pivotal moment for Galera Therapeutics as it looks to conclude its operations while maximizing value for its stockholders.
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