Recently, Talis Biomedical, a U.S.-based company specializing in point-of-care infectious disease testing, announced that it has begun exploring strategic alternatives and will be cutting approximately 90% of its workforce to preserve cash flow.
In a statement, Talis said that the company’s Board of Directors has appointed a special committee composed of independent directors to consider various strategic alternatives, including equity or debt financing alternatives, acquisitions, mergers or reverse mergers, asset divestitures, licensing, or other strategic transactions. TD Cowen will serve as the financial advisor during this review.
The company has not set a timeline for completing the strategic process and stated that it does not intend to provide updates on the progress unless deemed appropriate or necessary.
Talis also plans to reduce its workforce by approximately 90% and consolidate its operations into a single site in Chicago. Additionally, the company will implement further cost-saving measures to reduce cash burn.
Talis announced its third-quarter financial results, reporting revenue of $140,000 for the quarter, down from $796,000 a year earlier. Grant revenue was $64,000, and product revenue totaled $76,000 for the quarter. The net loss for the third quarter of 2023 was $15.7 million (approximately RMB 113 million), compared to $26 million in the same period last year. The company had $88 million in cash and equivalents at the end of the quarter.
After raising $254 million in its initial public offering in 2021, Talis has faced a series of setbacks. Last year, the company cut 35% of its workforce and announced that it would halt the commercialization of its COVID-19 test to focus on opportunities in the women’s and sexual health sectors. At the beginning of 2022, due to manufacturing issues and inefficiencies greater than 10%, Talis announced that the launch of its Talis One molecular diagnostics system would be delayed. The Talis One system uses real-time loop-mediated isothermal amplification (LAMP) technology for DNA targets and real-time reverse transcription LAMP technology for RNA targets.
Post time: Aug-26-2024