NephroGenex shares plunged 37 percent Wednesday after the company said it had paused a clinical trial of its experimental treatment for kidney disease while it moves to restructure its operations.
“The Board of Directors made this determination in light of remaining trial costs, the company’s cash balance and the condition of the capital markets,” the company said in a statement.
Raleigh-based NephroGenex has just $11.5 million in cash on hand.
The company said it has engaged MTS Health Partners, a boutique investment bank focused on the health care sector, about a possible reverse merger to “assist in evaluating these alternatives.” It also canceled a conference call planned for Thursday to discuss its fourth-quarter earnings.
NephroGenex’s stock fell 42 cents to close at 70 cents on Wednesday. The company was one of a handful of biotechnology companies based in the Triangle that went public in 2013 and 2014. Its shares have badly underperformed since the company went public at $12 a share in February 2014.
NephroGenex had been testing its drug Pyridorin as an experimental treatment for diabetic nephropathy, a chronic, degenerative disease of the kidneys caused by diabetes that about 6 million people suffer from. In December, the Food and Drug Administration cleared NephroGenex to conduct clinical trials using Pyridorin to treat acute kidney injury.