Infinity Pharmaceuticals is facing significant challenges after the collapse of its proposed merger with MEI Pharma. In an effort to mitigate the impact and reduce its expenses, the company has taken drastic measures, including laying off 78% of its staff and shrinking its board of directors.
The merger with MEI Pharma was expected to be a transformative move for Infinity Pharmaceuticals, but unfortunately, it did not receive enough shareholder support to proceed. As a result, MEI Pharma had no choice but to abandon the merger, leading to a series of consequential actions by Infinity.
With the merger off the table, Infinity Pharmaceuticals is now focusing on preserving its financial resources and managing its “burn rate.” To achieve this, the company decided to lay off a significant portion of its workforce, letting go of 21 employees, which accounts for approximately 78% of its staff.
Additionally, three members of the board of directors chose to step down following the merger’s failure. However, the remaining board members have agreed to continue their terms without receiving compensation in an effort to support the company during this challenging time.
The merger’s rejection by shareholders has undoubtedly posed a setback for Infinity Pharmaceuticals, prompting them to take these drastic actions. The decision to lay off employees and streamline the board aims to cut costs and ensure the company’s viability in the wake of the failed merger.
Infinity Pharmaceuticals is now reassessing its strategy and financial position in the aftermath of the merger’s collapse. The company will likely be focusing on regaining investor confidence and exploring alternative paths for growth and development in the highly competitive pharmaceutical industry.
