Half of Opthea board quits after restructure, clinical trial failure
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The news: Eye disease focused biotech Opthea has lost four board directors after the company’s phase three clinical trials failed and it announced a 65% workforce reduction.
The context: Dr Julia Haller, Dr Susan Orr, Quinton Oswald and Anshul Thakral have resigned, effective today.
ASX trading of Opthea shares has been suspended since 14 March and will remain so until the company is able to provide clarity on the financial impact of the issues the company is facing. Opthea shares are also in a trading halt on the Nasdaq.
The company's phase three trial results were announced in late March, with its retrenchment plans announced in April.
Opthea is still negotiating with its Development Funding Agreement investors to explore possible options and the company is currently relying on ‘safe harbour’ provisions in the Corporations Act, which alleviates directors from personal liability as a restructure is undertaken to avoid insolvent trading.
The source: ASX
