Cellectar Biosciences Implements Workforce Reduction Plan to Enhance Operational Efficiency

Cellectar Biosciences, a biopharmaceutical company listed on the NASDAQ under the ticker symbol CLRB, recently disclosed in an 8-K filing its decision to initiate a workforce reduction plan for cost optimization and better alignment with its business strategy. The Board of Directors at Cellectar Biosciences approved the plan on December 10, 2024, aimed at reducing operating costs following recent interactions with the U.S. Food and Drug Administration (FDA) regarding its confirmatory study to support accelerated approval and the regulatory submission for iopofosine I 131.

The company plans to reduce its overall workforce by approximately 60%, aiming to complete the implementation of this plan by the end of the fourth quarter of 2024. Impacted employees will be eligible for severance benefits such as salary continuation, COBRA premium subsidies, and a severance incentive, subject to the execution of a separation agreement. Additionally, any unvested stock options scheduled to vest within 90 days of termination will immediately become fully vested.

Cellectar Biosciences estimates that this workforce reduction will lead to an annual decrease in operating costs by around $7.5 million. However, the company foresees incurring approximately $1.7 million in aggregate severance costs, expected to be primarily recorded in the fourth quarter of 2024 and the first quarter of 2025. The company acknowledges that the actual costs may vary due to certain assumptions and potential unforeseen events linked to the restructuring process.

This workforce restructuring news comes alongside Cellectar’s decision to focus on its assets with the highest therapeutic potential. The company plans to concentrate on progressing its actinium-225 based program, CLR 121225, and iodine-125 Auger-emitting program, CLR 121125, into clinical trials to target solid tumors more effectively. These strategic shifts are part of Cellectar’s endeavor to expedite the development of viable treatment options for cancer patients.

The 8-K filing also noted that additional details about the workforce reduction plan and strategic realignment can be found in Cellectar Biosciences’ annual and quarterly reports filed with the Securities and Exchange Commission (SEC). The company emphasized that the decisions and estimates provided are forward-looking statements subject to inherent risks and uncertainties, and it undertakes no obligation to update these expectations based on future information or events.

In a press release issued on the same date, Cellectar Biosciences highlighted its commitment to advancing radiotherapeutic assets and providing an overview of its clinical development programs and restructuring activities.

Please note that the information contained within this article is derived from the 8-K SEC Filing dated December 10, 2024, and the accompanying press release released by Cellectar Biosciences on the same day.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cellectar Biosciences’s 8K filing here.

Cellectar Biosciences Company Profile

Cellectar Biosciences, Inc, a clinical biopharmaceutical company, focuses on the discovery, development, and commercialization of drugs for the treatment of cancer. Its lead phospholipid drug conjugate (PDC) candidate is CLR 131 (iopofosine I-131), which is in Phase 2 clinical study for patients with B-cell malignancies; Phase 2a clinical study for patients with relapsed or refractory (r/r) Waldenstrom's macroglobulinemia cohort, r/r multiple myeloma (MM) cohort, and r/r non-Hodgkin's lymphoma cohort; Phase 1 clinical study for r/r pediatric patients with select solid tumors, lymphomas, and malignant brain tumors; and Phase 1 clinical study for r/r head and neck cancer.