Item 2.05. Costs Associated with Exit or Disposal Activities.
On
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
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
Item 8.01. Other Events.
On
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. 99.1 Press Release issued byDeciphera Pharmaceuticals, Inc. onNovember 30, 2021 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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