By Connor Hart
Shares of HilleVax gained after it said it will cut about 70% of its workforce, or about 28 jobs, and that several executives were leaving the company.
The stock jumped 16%, to $2.16, in after-hours trading Thursday. Shares ended the day 2.6% lower, at $1.87, putting them down 88% since the beginning of the year.
The Boston-based biopharmaceutical company said its job cuts, which are likely to be substantially complete by the end of January, will reduce operating expenses. It previously cut 15 jobs, or about 25% of its workforce, in October.
It expects to incur about $6.1 million in charges associated with the current round of layoffs, primarily from employee severance payments, benefits and related termination costs. The majority of these charges will be recognized in the fourth quarter of this year, the company said.
HilleVax's remaining workers will continue to explore and evaluate the development of its norovirus vaccine candidates, as well as business development-related activities for these vaccine candidates and other strategic alternatives, it said.
Also on Thursday, the company said Chief Operating Officer Sean McLoughlin, Chief Medical Officer Astrid Borkowski and Chief Business Officer Aditya Kohli will leave their respective roles, effective Dec. 19.
At that point, McLoughlin and Kohli will transition to consultant roles on an hourly, as-needed basis. Borkowski will remain a non-executive employee through Sept. 30, 2025.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
December 05, 2024 18:41 ET (23:41 GMT)
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