By Maria Armental
Zosano Pharma Corp. on Friday warned it would need a substantial cash infusion to remain in business, sending shares down 17% to $1.58 in after-hours trading.
The clinical-stage biopharmaceutical company, which had said it was suspending its lead product candidate program and laying off employees, reported a first-quarter net loss of $33.4 million, or $7.86 a share, as it booked an impairment loss of $25.9 million for the three months ended March 31. That included a write-down of $24.8 million of property and equipment and $1.1 million of right-of-use assets and it was largely related to company's suspended M207 program.
Zosano said that as of May 11 it had about $9.9 million in cash and that it would need "substantial additional funding to fund its operations and will not be able to continue as a going concern if it is unable to raise additional funds."
Separately, it said that it would reduce the size of its board, following the resignation of Joseph "Jay" P. Hagan, the chairman of the audit committee.
Mr. Hagan's resignation, the company said, isn't based on any disagreement.
Write to Maria Armental at maria.armental@wsj.com
$(END)$ Dow Jones Newswires
May 13, 2022 16:25 ET (20:25 GMT)
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