Latest news with #KorroBio
Yahoo
09-05-2025
- Business
- Yahoo
4 more biotechs cut staff amid market tumult
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Four biotechnology companies are laying off staff in the latest examples of cutbacks in a sector struggling to hold its footing amid financial market turmoil. On Thursday, Vor Bio, Korro Bio, Rallybio and Insitro all revealed plans to cut at least a fifth of their respective workforces. For Vor, the developer of a type of CRISPR-aided stem cell transplant, those cuts were particularly steep, involving 95% of its employees and a wind-down of its clinical and manufacturing operations. The announced layoffs come during a tumultuous time for U.S. biotechs. Leadership turnover, staffing cuts at public health agencies, as well as the threat of pharmaceutical tariffs and new federal drug pricing policies have created market volatility that's made it more difficult for companies to raise funding. Dealmaking, which helps drive investor interest in biotechs, has slowed, and initial public offerings — already difficult for companies to pull off — have essentially ground to a halt since February. Those forces have pressured private and publicly traded drugmakers alike. On the public side, many companies have such depressed stock prices that they're worth less than their cash holdings. Startups, meanwhile, are staying private for longer and being pushed by their venture backers toward pharmaceutical collaborations to fill funding gaps. Many drug companies are also cutting costs to reach key study readouts that can boost their value. For instance, Korro's layoffs, which affect about one-fifth of its workforce, are meant to give the RNA editing company enough time to complete an early-stage study for its lead program next year, nominate a second development candidate and advance a partnership with Novo Nordisk. 'Streamlining the organization is essential to enable Korro's long-term success,' said Todd Chappell, the company's chief operating officer, in a statement. Following the restructuring, the company should have enough cash to operate into 2027. Korro had 112 full-time employees at the end of March, according to a regulatory filing. Insitro is taking similar steps. The company, a privately held AI drug discovery specialist, is laying off 22% of its workforce, leaving it with about 230 workers. In an emailed statement, Insitro noted how the restructuring would 'sharpen our focus on key priorities,' ensure 'clinic readiness' next year, and keep running into 2027. 'This is a prudent step amidst macroeconomic uncertainty,' Insitro said. In some cases, biotechs have been forced into multiple restructurings to survive. Rallybio, whose shares have lost nearly all of their value since an $81 million initial public offering four years ago, laid off 45% of its workforce in 2024 and announced intentions to cut another 40% on Thursday. Increasingly, investors are pressing struggling biotechs to shut down and return cash to shareholders rather than pivot strategically or merge with another drugmaker. Multiple activist firms have pressured company boards in recent months, and one biotech, Third Harmonic Bio, approved a liquidation plan three weeks ago. Vor may be headed down a similar path. The company was expected to disclose updated clinical study results in the first half of the year. But on Thursday, it cited 'currently available clinical data from its key clinical programs' as well as a 'challenging fundraising environment' for its decision to terminate nearly all of its staff and shutter its clinical work. Vor has begun a strategic review that could end in a variety of outcomes, among them a sale, but it will be left with only about eight employees following the layoffs. Data compiled by Fierce Biotech show 95 drugmakers have cut staff this year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Korro Bio price target lowered to $53 from $130 at H.C. Wainwright
H.C. Wainwright lowered the firm's price target on Korro Bio (KRRO) to $53 from $130 and keeps a Buy rating on the shares. The company reported Q1 results and announced a 20% workforce reduction to extend its cash runway into 2027 from the second half of 2026, the analyst tells investors in a research note. The firm believes Korro's catalysts are on track but adjusted its model to reflect the 'increasingly competitive' alpha-1 antitrypsin deficiency landscape. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on KRRO: Disclaimer & DisclosureReport an Issue Korro Bio price target lowered to $100 from $115 at H.C. Wainwright Strategic Workforce Restructuring and Clinical Advancements Justify Buy Rating for Korro Bio Korro Bio reports Q1 EPS ($2.49), consensus ($2.62) Korro Bio Announces Strategic Workforce Reduction Plan Korro Bio initiated with an Overweight at Cantor Fitzgerald
Yahoo
19-03-2025
- Business
- Yahoo
Is Korro Bio (NASDAQ:KRRO) In A Good Position To Invest In Growth?
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. So, the natural question for Korro Bio (NASDAQ:KRRO) shareholders is whether they should be concerned by its rate of cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. See our latest analysis for Korro Bio You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. When Korro Bio last reported its December 2024 balance sheet in March 2025, it had zero debt and cash worth US$126m. Importantly, its cash burn was US$78m over the trailing twelve months. That means it had a cash runway of around 19 months as of December 2024. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. The image below shows how its cash balance has been changing over the last few years. In our view, Korro Bio doesn't yet produce significant amounts of operating revenue, since it reported just US$2.3m in the last twelve months. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. With the cash burn rate up 3.8% in the last year, it seems that the company is ratcheting up investment in the business over time. However, the company's true cash runway will therefore be shorter than suggested above, if spending continues to increase. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years. While its cash burn is only increasing slightly, Korro Bio shareholders should still consider the potential need for further cash, down the track. Companies can raise capital through either debt or equity. Many companies end up issuing new shares to fund future growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate). Korro Bio has a market capitalisation of US$235m and burnt through US$78m last year, which is 33% of the company's market value. That's not insignificant, and if the company had to sell enough shares to fund another year's growth at the current share price, you'd likely witness fairly costly dilution. On this analysis of Korro Bio's cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. We don't think its cash burn is particularly problematic, but after considering the range of factors in this article, we do think shareholders should be monitoring how it changes over time. On another note, we conducted an in-depth investigation of the company, and identified 4 warning signs for Korro Bio (1 is concerning!) that you should be aware of before investing here. If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
