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DECIPHERA PHARMACEUTICALS, INC. : Costs Associated with Exit or Disposal Activities, Other Events, Financial Statements and Exhibits (form 8-K)

11/30/2021 | 08:43am

Item 2.05. Costs Associated with Exit or Disposal Activities.

On November 30, 2021, Deciphera Pharmaceuticals, Inc. (the "Company") approved
and announced a restructuring (the "Restructuring") to prioritize clinical
development programs, streamline commercial operations and extend cash runway.
The Restructuring was in connection with a portfolio review previously announced
on November 5, 2021, the purpose of which was to determine how best to invest
resources to maximize shareholder value following the announcement of the
results of the Company's Phase 3 INTRIGUE study in second-line GIST.

As part of the Restructuring, the Company is reducing its workforce by
approximately 35%, or approximately 140 full-time employees. This reduction in
force is expected to take place during, and be substantially completed by, the
end of the first quarter of 2022. In addition, the Company announced that it
intends to discontinue further development of rebastinib, including the
Company's plan to begin a Phase 3 study of rebastinib in 2022 in patients with
platinum-resistant ovarian cancer subject to feedback from regulatory
authorities, and ripretinib.

The Restructuring is expected to extend the Company's cash runway into 2024
through significant reductions in the Company's operating expenses including
personnel-related costs and external expenses. As a result of the Restructuring,
the Company expects to recognize a one-time cash charge in the fourth quarter of
2021 of approximately $32 million. This charge is expected to include
approximately $10 million of employee-related termination costs and
approximately $22 million of discontinuation costs such as contract termination
fees and non-cancellable commitments related to the rebastinib and ripretinib
programs. These estimates of the expenses that the Company expects to incur and
potential cost savings, and the timing thereof, are subject to a number of
assumptions and actual results may differ. The Company may also incur additional
costs not currently contemplated due to events that may occur as a result of, or
that are associated with, the Restructuring.

Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended, including, without
limitation, the Company's expectations and timing regarding its areas of focus
following the Restructuring, expected extended cash runway, expected charges,
discontinuation costs and reductions in the Company's operating expenses
including personnel-related costs and external expenses and workforce reduction
from the Restructuring, the anticipated timing of the foregoing, the benefits of
and potential of the Company's portfolio prioritization, including
discontinuation of further development of rebastinib. The words "may," "will,"
"could," "would," "should," "expect," "plan," "anticipate," "intend," "believe,"
"estimate," "predict," "project," "potential," "continue," "seek," "target" and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words. Any
forward-looking statements in this report are based on management's current
expectations and beliefs and are subject to a number of risks, uncertainties and
important factors that may cause actual events or results to differ materially
from those expressed or implied by any forward-looking statements contained in
this report, including, without limitation, risks and uncertainties related to
the possibility that the Company will not achieve the expected cost savings
expected from the Restructuring, expectations regarding the prioritization of
the Company's development programs, the severity and duration of the impact of
COVID-19 on its business and operations, the Company's ability to successfully
demonstrate the efficacy and safety of its drug or drug candidates, the
preclinical or clinical results for its product candidates, which may not
support further development of such product candidates, the Company's ability to
manage its reliance on sole-source third parties such as its third party drug
substance and drug product contract manufacturers, comments, feedback and
actions of regulatory agencies, the ability to commercialize QINLOCK and execute
on marketing plans for any drugs or indications that may be approved in the
future, the inherent uncertainty in estimates of patient populations,
competition from other products, the Company's ability to obtain and maintain
reimbursement for any approved product and the extent to which patient
assistance programs are utilized, its ability to comply with healthcare
regulations and laws, its ability to obtain, maintain and enforce its
intellectual property rights, any or all of which may affect the initiation,
timing and progress of clinical studies and the timing of and the Company's
ability to obtain additional regulatory approvals, and other risks identified in
its Securities and Exchange Commission ("SEC") filings, including its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2021, and subsequent
filings with the SEC. We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date they are made. The
Company disclaim any obligation to publicly update or revise any such statements
to reflect any change in expectations or in events, conditions or circumstances
on which any such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in the forward-looking
statements. Any forward-looking statements contained in this report represent
the Company's views only as of the date hereof and should not be relied upon as
representing its views as of any subsequent date. The Company explicitly
disclaim any obligation to update any forward-looking statements.

Item 8.01. Other Events.

On November 30, 2021, the Company issued a press release related to the
Restructuring. A copy of the press release is filed herewith as Exhibit 99.1 to
this Current Report on Form 8-K and is incorporated by reference into this Item


Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release issued by Deciphera Pharmaceuticals, Inc. on
November 30, 2021

104 Cover Page Interactive Data File (embedded within the Inline XBRL


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