ORIC Pharmaceuticals has announced a strategic restructuring that includes laying off 20% of its employees as it doubles down on advancing its two most promising oncology candidates: a PRC2 inhibitor named ORIC-944 and a brain-penetrant EGFR/HER2 inhibitor now known as enozertinib (formerly ORIC-114). This move aligns with the company’s shift toward becoming a more streamlined clinical development organization and positions it to launch Phase 3 trials for both assets by 2026.

The decision follows encouraging data from an ongoing Phase 1b study of ORIC-944 in metastatic castration-resistant prostate cancer (mCRPC). In the trial, 59% of treated patients achieved a 50% or greater reduction in prostate-specific antigen (PSA) levels—a result that ORIC believes supports its characterization of ORIC-944 as a potentially “best-in-class” PRC2 inhibitor.

To finance this clinical focus, ORIC will disband its discovery research group and explore external partnerships for its earlier-stage programs. The company’s enhanced financial position—bolstered by recent financing—extends its cash runway into the second half of 2028. The restructuring is expected to incur approximately $1.9 million in one-time termination expenses in Q3.

CEO Jacob Chacko, M.D., emphasized that, as their lead programs near registration-stage development, it became crucial to prioritize investment selectively in those assets. This restructuring marks the company’s determination to advance ORIC-944 and enozertinib expeditiously toward late-stage trials and eventual regulatory filings.