InflaRx N.V. (IFRX) announced Thursday it's making some tough calls to keep the lights on longer. The biotech is cutting about 30% of its workforce and dramatically scaling back spending on Gohibic (vilobelimab) as it doubles down on izicopan, its lead investigational drug candidate.
The goal here is pretty straightforward: stretch the cash runway into mid-2027 while sharpening focus on what management thinks has the best shot at success. Gohibic, for context, is a medicine approved under emergency use authorization to treat acute respiratory distress syndrome caused by COVID-19. But with the pandemic emergency fading, the company's shifting gears.
What's Changing
Beyond the workforce reduction, InflaRx is discontinuing most non-essential activities that don't directly support izicopan development. That includes substantial cuts to Gohibic-related commercial spending and support functions, a clear signal that broad commercialization efforts for that drug are being shelved.
The restructuring will cost the company about $7 million as a one-time charge. But the payoff is a leaner operation and significantly lower burn rate going forward.
Despite the pullback, InflaRx emphasized it will continue supporting the ongoing BARDA-sponsored "Just Breathe" Phase 2 platform study evaluating Gohibic in acute respiratory distress syndrome. The company says the restructuring won't affect that trial. Gohibic will also remain available for ordering in the U.S. under its emergency use authorization, though InflaRx plans to meet demand reactively rather than proactively pushing the product.
The company is also exploring partnering opportunities for Gohibic in both the U.S. and Europe, and plans to talk with the FDA about a potential development path for vilobelimab in pyoderma gangrenosum—though likely with a partner handling the heavy lifting.