The failure to meet the primary endpoint in head-to-head testing against aflibercept marks a critical blow for the firm’s lead pipeline asset. In response to the data, management announced a drastic restructuring plan that includes cutting more than half of its total workforce. This austerity measure is projected to save $30 million annually as the company attempts to pivot its remaining resources toward developing Duravyu for diabetic macular edema.

Investors reacted sharply to the news, sending the stock down 81% to 57 cents in recent trading. Despite the clinical setback, the company maintains a cash position of $118 million in equivalents and short-term investments as of September 30, providing a narrow runway to pursue the alternate indication.