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STONY BROOK, NY - Applied DNA Sciences, Inc. (NASDAQ:APDN), a biotechnology company with a market capitalization of $2.51 million and currently showing signs of being undervalued according to InvestingPro analysis, announced Monday a strategic restructuring that includes a 27% reduction in its workforce and the closure of its Applied DNA Clinical Labs business, effective June 27, 2025.
The biotechnology company said it is realigning resources to focus exclusively on its synthetic DNA manufacturing business, LineaRx, which develops platform technologies for enzymatic manufacture of synthetic DNA and associated enzymes used in DNA- and RNA-based medicines. This strategic shift comes as the company faces significant challenges, with revenue declining 31.3% over the last twelve months according to InvestingPro data.
"We believe these strategic decisions enable us to set business priorities, funds, and management attention behind LineaRx as our highest-conviction growth opportunity," said Judy Murrah, chairperson, president, and CEO, in a press release statement.
The workforce reduction is projected to cut annual payroll costs by 23%, though the company expects to incur approximately $300,000 in one-time charges related to separation benefits, primarily in the fourth quarter of fiscal 2025.
This restructuring follows earlier strategic moves in December 2024, when Applied DNA began exiting non-core operations. In February 2025, the company discontinued its DNA Tagging and Security Products and Services business segment, which involved a 20% workforce reduction at that time.
Since initiating its restructuring efforts, Applied DNA has reduced its total headcount by 39%, projecting a 31% reduction in annual payroll expenses compared to the fiscal year ended September 30, 2024.
The company reported cash and cash equivalents of approximately $4.8 million as of May 31, 2025. While InvestingPro data shows the company maintains more cash than debt on its balance sheet with a healthy current ratio of 4.45, analysts note the company is quickly burning through its cash reserves. InvestingPro subscribers have access to 10+ additional key financial metrics and insights about APDN’s financial health.
LineaRx’s president, Clay Shorrock, noted that demand for enzymatically produced DNA is accelerating in the genetic medicines field, and the company is aligning resources toward customer acquisition and market expansion.
In other recent news, Applied DNA Sciences has announced a leadership change with Judy Murrah appointed as the new Chairperson and CEO, following Dr. James A. Hayward’s retirement. Murrah, who has been with the company for over a decade, will continue to serve as President while leading the executive team. Additionally, the company has faced challenges with Nasdaq compliance due to its stock price falling below the required $1.00 minimum bid for an extended period. In response, Applied DNA executed a 1-for-15 reverse stock split to address this issue and has requested a hearing to delay any delisting actions. Meanwhile, the company’s subsidiary, LineaRx, has successfully secured a U.S.-based supply chain for essential materials, aligning with industry trends towards domestic production. This strategic move is expected to strengthen Applied DNA’s position in the genetic medicines market. Furthermore, Applied DNA has regained compliance with Nasdaq’s minimum bid price rule, maintaining a closing bid price of $1.00 or more for the required period. This achievement ensures the company’s continued listing on the Nasdaq, providing stability and visibility to investors.
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