Organovo Holdings Inc. is exploring strategic alternatives and a restructuring program to significantly reduce expenses, following the board of directors' decision to discontinue its lead liver drug candidate.
Organovo's stock plunged about 30.3% to 27 cents as of 1:58 p.m. ET on Aug. 7.
Roth Capital Partners will be the San Diego, Calif.-based biotechnology company's financial adviser in the process, Organovo said in its Aug. 7 press release.
According to Organovo, the lead liver program was suspended due to insufficient data supporting its therapeutic benefit, and the development challenges and timeline would not have returned sufficient value to shareholders.
Potential strategic alternatives could include an acquisition, merger, reverse merger, business combination, sale of assets, licensing or other transaction.