OvaScience Inc (NASDAQ:OVAS) announced a business update. The Company will continue to make AUGMENT available to patients at partner clinics in Canada and Japan and maintain its current commercial footprint. However, the Company will slow its commercial expansion, reassess its ongoing and planned clinical studies of AUGMENT, and undertake a corporate restructuring.
These changes will enable the Company to extend its cash position into the first quarter of 2019 and increase its focus on the development of OvaPrime and OvaTure.
In connection with this shift in strategy, President and Chief Executive Officer, Harald Stock, Ph.D. and Chief Operating Officer, Paul Chapman, who were brought on board to lead a global commercial expansion of AUGMENT, have chosen to step down to seek new opportunities. The Company will also reduce its workforce by approximately 30 percent. Michelle Dipp, M.D., Ph.D., Executive Chair and co-founder of OvaScience, will oversee operations while the Company conducts a comprehensive search for a new chief executive officer.
“While we have made progress on building the infrastructure to commercialize AUGMENT and remain confident its potential, the near-term financial return has not been sufficient for us to continue to invest at the levels we believe are necessary for a large commercial expansion. We remain committed to developing our groundbreaking therapies for as many women and couples as possible,” said Dr. Dipp. “We thank Harald and Paul and wish them the best in their future endeavors.”
Revising AUGMENT Strategy
OvaScience remains confident in the safety and efficacy of AUGMENT and will continue to offer the treatment to patients at partner clinics in Canada and Japan but will limit the growth of its commercial infrastructure in those countries. The Company is reassessing the ongoing IVI-sponsored clinical study in Spain as well as the planned multi-center clinical trial and will provide an update in the near-term.
Separately, OvaScience is scheduled to speak with the U.S. Food and Drug Administration in the first half of 2017, as part of its ongoing exploration of potential entry into the U.S. market. (Original Source)
Shares of OvaScience Inc shares are falling 22.56% to $2.30, or down $0.67 in after-market trading Wednesday. OVAS has a 1-year high of $11.66 and a 1-year low of $2.80. The stock’s 50-day moving average is $3.51 and its 200-day moving average is $5.48.
On the ratings front, OvaScience has been the subject of a number of recent research reports. In a report issued on December 6, Oppenheimer analyst Derek Archila reiterated a Hold rating on OVAS. Separately, on November 7, Credit Suisse’s Kennen MacKay reiterated a Sell rating on the stock and has a price target of $4.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Derek Archila and Kennen MacKay have a yearly average loss of -1.4% and a return of 15.3% respectively. Archila has a success rate of 33% and is ranked #2938 out of 4291 analysts, while MacKay has a success rate of 65% and is ranked #145.
OvaScience, Inc. engages in the research and development of female infertility treatments. Its portfolio includes AUGMENT, OvaPrime, OvaTure, and OvaXon which intends to improve the female’s egg health and reserve.