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CRANBURY, N.J. - Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT), a $362 million market cap biotech company currently trading at $3.36, announced Thursday a strategic reorganization that will reduce its workforce by approximately 30% as the company shifts focus to its cardiovascular gene therapy programs. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The restructuring will prioritize Rocket’s adeno-associated virus (AAV) cardiovascular platform, which includes clinical programs for Danon disease, PKP2-associated arrhythmogenic cardiomyopathy, and BAG3-associated dilated cardiomyopathy. The company will also continue regulatory activities for KRESLADI, its treatment for severe leukocyte adhesion deficiency-I.
The workforce reduction and other cost-saving measures are expected to lower Rocket’s 12-month operating expenses by nearly 25%. The company projects its current cash resources will fund operations into the second quarter of 2027.
"Our prioritization reflects a commitment to the programs with the most compelling near-term opportunities for patients and to setting a foundation for Rocket’s long-term growth and success," said Gaurav Shah, Chief Executive Officer of Rocket Pharmaceuticals, in a press release statement.
As part of the realignment, Rocket anticipates delays in its Fanconi Anemia and Pyruvate Kinase Deficiency programs. FDA approval for the Fanconi Anemia treatment is no longer expected in 2026.
The company’s cardiovascular programs target genetically defined causes of hypertrophic, arrhythmogenic, and dilated cardiomyopathies, which Rocket says affect more than 100,000 patients in the U.S. and EU.
Rocket Pharmaceuticals plans to provide additional information about its strategic options during its second quarter earnings update.
In other recent news, Rocket Pharmaceuticals has been granted the Regenerative Medicine Advanced Therapy (RMAT) designation by the U.S. Food and Drug Administration for its gene therapy RP-A601. This therapy targets PKP2-arrhythmogenic cardiomyopathy, a serious heart condition, and the designation comes after positive safety and efficacy results from a Phase 1 clinical trial. Additionally, Rocket Pharmaceuticals received FDA clearance for its Investigational New Drug application for RP-A701, another gene therapy candidate aimed at treating BAG3-associated Dilated Cardiomyopathy. This marks the third clinical-stage gene therapy candidate in the company’s cardiovascular portfolio. In corporate developments, Rocket Pharmaceuticals appointed Christopher Stevens as the new chief operating officer. Stevens brings experience from Spark Therapeutics and has held leadership roles at GlaxoSmithKline and Bristol-Myers Squibb. These developments reflect ongoing progress in Rocket Pharmaceuticals’ efforts to advance its cardiovascular therapies.
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