- Reduction in force of approximately 65% to preserve cash
- Opthea estimates cash and cash equivalents of US$100M as of March 2025
Opthea Limited provided a corporate update following the termination of its COAST (Combination of OPT-302 with Aflibercept Study) and ShORe (Study of OPT-302 in combination with Ranibizumab) phase 3 clinical trials.
In light of the negative trial results, the Board has made the decision to take additional steps to reduce the company’s cost base, including by reducing its workforce by approximately 65%.
A limited number of employees will remain in place to ensure the compliant termination of clinical trial activities and oversee administration operations.
“Following the negative phase 3 trial results, and in consultation with the company’s Development Funding Agreement (DFA) Investors, the Board has concluded that it is in the best interest of our investors to conserve cash,” said Fred Guerard, PharmD, CEO of Opthea. “We are grateful for the numerous contributions of our colleagues leaving Opthea and wish them the best for their future endeavors.”
It is expected that this workforce reduction will be effective from May 1, 2025. The one-off costs associated with the reduction in force will be approximately US$4.5M, and will result in a reduction in monthly employee costs of approximately US$1M.
Opthea estimates unaudited cash and cash equivalents of US$100M at the end of March 2025.
As previously disclosed, the company remains in active negotiations with its DFA Investors, pursuant to and as required under the DFA, to explore possible options to deliver the best outcome for the company and its shareholders.
A copy of the DFA is included as Exhibit 4.19 to Opthea’s Annual Report on Form 20-F filed with the US Securities and Exchange Commission on August 30, 2024.
In light of these matters, there remains material uncertainty as to Opthea's ability to continue as a going concern. (1) As noted above, discussions with the DFA Investors are ongoing and Opthea cannot be certain as to the outcome of those discussions or when that outcome may become known. Opthea is currently relying on the "safe harbour" provisions in section 588GA of the Corporations Act 2001 (Cth).
Trading in Opthea’s listed securities will be suspended by ASX under ASX Listing Rule 17.3 until Opthea is in a position to provide an announcement to the market providing more clarity on these issues and the impact on Opthea’s financial position.