AlloVir Inc. (ALVR, +5.02%), a pioneering developer of cutting-edge cell therapies designed to treat viral diseases, has made the strategic decision to reduce its workforce by approximately 95%. This move comes on the heels of last month's announcement regarding the discontinuation of three clinical trials for its flagship T cell therapy, posoleucel. Aimed at preserving valuable capital, this action was officially approved by the company's board on January 1.
The staff reductions will be mostly implemented during the first quarter of 2024, reaching completion by April 15. AlloVir's Phase 3 trials for posoleucel, which aimed to combat six viral pathogens such as the Epstein-Barr virus and human herpesvirus, were halted after a thorough analysis revealed that the studies were unlikely to achieve their primary endpoints.
In a recent filing, AlloVir stated that it anticipates recording charges of approximately $13 million in the first quarter. These charges will account for severance packages and other related benefits for the affected employees. As news of the workforce reduction broke, the company's shares experienced a 3.4% increase in after-hours trading.