Protagenic Therapeutics Restructures to Focus on PT00114, Suspends Preclinical Expenditures, and Terminates CEO and COO Positions.

Protagenic Therapeutics is restructuring to focus on its primary clinical program, PT00114. The plan includes suspending preclinical expenditures, reducing operating expenses by $8 million annually, and terminating the CEO and COO positions. The company is exploring strategic alternatives for paused preclinical programs while efficiently executing the ongoing Phase 2 clinical trial of PT00114.

Protagenic Therapeutics, Inc. (PTIX) has announced a significant restructuring plan aimed at concentrating resources on its primary clinical program, PT00114. The board-approved plan involves suspending preclinical expenditures, reducing operating expenses by $8 million annually, and terminating the CEO and COO positions. The company is also exploring strategic alternatives for paused preclinical programs while efficiently executing the ongoing Phase 2 clinical trial of PT00114 [1].

The restructuring plan includes suspending preclinical programs, reducing operating expenses, and terminating the CEO and COO positions to focus on PT00114. The company aims to efficiently execute the ongoing Phase 2 clinical trial of PT00114 and explore strategic alternatives for paused preclinical programs [2]. The restructuring plan is expected to reduce annualized operating expenses by approximately $8 million [3].

Protagenic Therapeutics has also changed its fiscal year-end to March 31 and will file a transition report for the period starting April 1, 2025 [3]. The company aims to advance its paused preclinical programs with external funding while preserving capital for its primary clinical assets [3].

The stock, currently trading at $2.78, has experienced significant pressure, falling nearly 75% over the past six months [3]. The restructuring plan is expected to reduce annualized operating expenses by approximately $8 million, which could potentially improve the company's financial health [3].

Protagenic Therapeutics is a micro-cap biotech company with a market capitalization of $1.63 million, focusing on the development of peptide-based therapeutics. The company is primarily engaged in advancing clinical programs, with a market focus on neurological and psychiatric disorders [3].

The company's board of directors approved the restructuring plan to focus resources on its lead clinical program and reduce operating costs. As part of this plan, Protagenic has temporarily suspended spending on its preclinical programs and is evaluating strategic alternatives for these assets, such as partnerships or out-licensing [3].

Protagenic Therapeutics has also secured a Japanese patent for a modified stilbenoid compound intended to treat epilepsy and seizures, which will remain in effect until March 31, 2041. Additionally, the company has raised $3.1 million through warrant exchanges and exercises, which will support the company’s working capital and further drug development efforts [3].

References:
[1] https://www.tipranks.com/news/company-announcements/protagenic-therapeutics-restructures-to-focus-on-pt00114
[2] https://www.marketwatch.com/story/protagenic-therapeutics-to-pause-trials-remove-ceo-in-restructuring-c5aba8b4
[3] https://www.investing.com/news/sec-filings/protagenic-therapeutics-restructures-operations-changes-fiscal-year-and-reduces-workforce-93CH-4190308