Renovo Group (LON:RNVO) confirmed today it will be left with £33 million if it presses ahead with plans to reduce its headcount by 100.
Currently the biotechnology group is sitting on £44.4 million and its cash burn was £7.6 million in the last six months, according to interim results.
Renovo has been forced to consider the drastic action after the failure of scarring treatment Juvista in EU phase III trials.
The company is currently coming towards the end of the 90 day consultation period with staff.
Professor Mark Ferguson, Renovo’s chief executive, said: “I am greatly surprised and saddened by the results of the first Juvista Phase III trial.
“We must now maximise returns to shareholders and we are actively progressing that strategy.
“We will update shareholders with our plans following the completion of the statutory consultation period.”
Renovo said today it is in talks to sell Juvidex, an additive to cosmetics and creams that may help accelerate skin healing and reduce redness.
At the same time it has ceased development of RN1005, which it also plans to sell along with its other pre-clinical programmes.
Meanwhile, work continues on Renovo’s clinical pipeline, continues. It includes Prevescar, another treatment designed to improve the appearance of scarring, and which has produced statistically significant data in phase II trials.
Adaprev, meanwhile, is being developed as a class III medical device in the EU, and the first trial for the reduction of tendon adhesion after injury is due to report by the end of the half. —Ian Lyall