Kronos Bio Stock Jumps After Deep Workforce Cuts And CEO Shuffle: Retail Aligns With Shake-Up
The company said this move is part of a broader strategy to implement cost-cutting measures.
FollowShares of cancer therapy developer Kronos Bio Inc. ($KRON) surged over 13% to hit their highest level since Nov. 6, with trading volume spiking more than six times the daily average.
The jump came after the company announced a drastic workforce reduction of approximately 83% by the end of the year.
The company said this move is part of a broader strategy to implement cost-cutting measures while exploring potential business combinations and/or divesting its remaining preclinical assets to maximize shareholder value.
Also, Kronos Bio revealed a leadership change: Deborah Knobelman will be appointed President and Interim CEO, effective Dec. 3.
Knobelman will take over from Norbert Bischofberger, who has been with the company since 2018 and will step down to remain on the Board of Directors and serve as an adviser.
KRON sentiment and message volume on Nov 27 as of 10:35 am ET | source: Stocktwits
Retail sentiment on Stocktwits climbed higher within the ‘extremely bullish’ territory, accompanied by a significant increase in message volume.
The workforce reduction follows an earlier 21% cut announced in March, with Kronos Bio estimating a $3.7 million charge related to the layoffs.
As of March 2024, the company reportedly had 62 full-time employees and one part-time employee.
Over a week ago, Piper Sandler had lowered its price target on Kronos Bio from $6 to $1 after the company halted development of its lead candidate, istisociclib, due to some adverse events in ovarian cancer patients.
Kronos Bio’s stock has fallen around 31% year-to-date, but the latest developments appears to have rekindled optimism among retail investors.
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