Ladenburg Thalmann downgraded Salarius Pharmaceuticals (NASDAQ:SLRX) to “neutral” from “buy” and removed its price target after the company disclosed it is exploring strategic alternatives and implement cost-cutting measures to deal with funding issues.
Shares of Salarius closed at 69 cents on Aug. 10.
The strategic alternatives include but are not limited to, an acquisition, merger, reverse merger, divestiture of assets, licensing, or other strategic transactions, writes analyst Ahu Demir, Ph.D.. No timetable was set for the process.
“If Salarius is unable to complete a transaction, it may be necessary to seek other alternatives for restructuring and resolving its liabilities, including an orderly wind-down of operations,” he added.
The company also is implementing a cost-saving plan that includes a reduction in workforce by over 50% of positions.
Dr. Demir said remaining employees will focus on limited drug development activities, complete the FDA process to determine the clinical trial registration requirements for the seclidemstat Ewing sarcoma program, and support exploration of strategic alternatives.
