Jasper Therapeutics Restructures, Halves Workforce Amid Drug Development Setback

Jasper Therapeutics, a California-based biotech company, has announced significant restructuring measures following a major setback in its drug development program. The company is laying off approximately 50% of its workforce and narrowing its research focus in response to unexpected results from a recent clinical trial.

Workforce Reduction and Leadership Changes

Jasper Therapeutics revealed plans to reduce its workforce by around 50%, a move that will affect about 30 employees based on the company's reported 60 full-time staff at the end of March. This restructuring is expected to incur charges of approximately $2 million.

In addition to the layoffs, the company announced the departure of Edwin Tucker, M.D., from his role as chief medical officer, effective at the beginning of next month. Daniel Adelman, M.D., a member of Jasper's scientific advisory board, will step in as acting chief medical officer.

Research Focus Shift and Program Cuts

The restructuring comes in the wake of disappointing results from a phase 1b/2a trial of briquilimab, Jasper's lead drug candidate. The company discovered that patients who received products from one lot of briquilimab did not experience the expected response to the KIT-targeting antibody in the treatment of chronic spontaneous urticaria (CSU), also known as hives.

As a result of this setback, Jasper is implementing the following changes to its research and development pipeline:

1. Focusing primarily on the development of briquilimab for CSU
2. Halting trials in asthma and severe combined immune deficiency
3. Discontinuing investigator-sponsored and preclinical studies
4. Abandoning plans to initiate an additional mast cell-focused clinical development program this year

Financial Implications and Future Outlook

The restructuring measures are aimed at extending Jasper's cash runway, which stood at $48.8 million at the end of March. Prior to these changes, the company had warned investors that its funds would be insufficient to support operations for the next 12 months.

Despite the setbacks, Jasper plans to share additional data from its phase 1b/2a trial and open-label extension studies later this year. The company's stock price has been negatively impacted by these developments, with shares falling 4% to $2.90 in premarket trading, adding to losses suffered earlier in the week.