ZIOPHARM Oncology, Inc. (ZIOP) stock plummeted 18.40% in the after-hours trading session at the price of $1.73 following the announcement of a strategic deduction in the workforce and expansion in the cash runway. ZIOP is a leading immuno-oncology platform. It produces cytokine-driven cells and gene therapies to weaponize the human immune system to treat people diagnosed with cancer globally.
Strategic Workforce Reduction and Cash Runway Extension
On 27th September 2021, ZIOP published a restructuring that empowers the company to promote its TCR program. The company has eliminated about 60 positions and expects these reforms will enlarge the cash runway into the first half of 2023. Ziopharm anticipates that the first patient in its TCR-T Library Phase I/II clinical trial will get a dose in the first half of 2022. The company keeps on investing in its manufacturing capabilities to expedite patient dosing. Additionally, ZIOP focused on having internal production capabilities operational by the first half of the year 2022.
CEO of ZIOP, Kevin S. Boyle, remarked that they acknowledge the contributions of their employees. They will keep on supporting these valued colleagues during this transformation. This strategic choice was necessary to create a structured organization by focusing on the clinical data of the company’s TCR-T Library program. The company is confident in the capacity of its highly talented team to administer this strategy, he added.
ZIOP Appointed Kevin S. Boyle as Chief Executive Officer
On 30th August 2021, ZIOP appointed Kevin S. Boyle as the company’s new Chief Executive Officer. The appointment became effective immediately. The Interim CEO, Heidi Hagen, has returned to her previous position as a member of the Board of Directors. Additionally, the company has made some other promotions within its senior management. Mr. Boyle, an accomplished capital market professional, has worked for over 20 years in managing businesses in competitive and transformative conditions. He has a superb track record of delivering high shareholder value. He has fostered strong banking relationships by raising $2.0 billion in equity and debt capital throughout his career.
Mr. Boyle commented that he is delighted to join the ZIOP team and is excited for the exceptional opportunities in the coming future. He recognizes the challenges ahead and is ready to work diligently with a talented team to unlock the company’s incredible potential as innovative and world-class oncology. His responsibilities include delivering shareholder value and ensuring the company’s success by leading its TCR-T program, he added.
