Conatus to Explore Strategic Alternatives and Implement Restructuring Plan
SAN DIEGO, June 24, 2019 (GLOBE NEWSWIRE) -- Conatus Pharmaceuticals Inc. (Nasdaq:CNAT) today announced that the company has engaged Oppenheimer & Co., Inc., as its financial advisor to assist in the exploration and evaluation of strategic alternatives to enhance shareholder value. There can be no assurance of a successful outcome from these efforts, or of the form or timing of any such outcome. The company does not intend to make any further disclosures regarding the strategic review process unless and until a specific course of action is approved by the company’s Board of Directors.
In order to extend its resources, Conatus is implementing a restructuring plan that includes reducing staff by approximately 40% and suspending development of its inflammasome disease candidate, CTS-2090. The company has updated its financial guidance and is projecting a year-end 2019 net balance of cash, cash equivalents and marketable securities of between $10 million and $15 million.
“We remain excited by the potential of CTS-2090 as a uniquely positioned inflammasome disease compound,” said Steven J. Mento, Ph.D., President, Chief Executive Officer and co-founder of Conatus. “However, we must preserve our remaining resources to extend our cash runway to better explore strategic alternatives that can benefit shareholders. Although we are halting development activities for CTS-2090, we plan to continue to explore a variety of opportunities to advance this compound.”
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements: concerning or implying the company will successfully complete a strategic alternative or that the company will be able to enhance shareholder value; regarding the company’s financial guidance; and regarding the exploration of opportunities for CTS-2090. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including, whether desirable strategic alternatives can be identified, and the company’s ability to conserve cash or to raise funds sufficient to complete a strategic alternative. In addition, if the company does not or is unable to retain certain remaining personnel, it may be difficult to complete a transaction. The company’s existing or future liabilities, including litigation, if any, could also be seen as detrimental to any potential parties to a strategic alternative. There can be no assurance that the company will be able conserve sufficient cash, raise additional funding on reasonable terms or at all, or complete any transaction. Other risks regarding the company’s business are described in Conatus’ prior press releases and in the periodic reports it files with the Securities and Exchange Commission. The events and circumstances reflected in Conatus’ forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, Conatus does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
CONTACT: Alan Engbring
Conatus Pharmaceuticals Inc.
Released June 24, 2019