Fractyl Health appoints two new directors and announces board resignation

Published 03/09/2025, 12:16
Fractyl Health appoints two new directors and announces board resignation

Fractyl Health, Inc. (NASDAQ:GUTS), a micro-cap biotech company currently valued at $67.34 million and trading near its 52-week low, announced changes to its board of directors effective Tuesday. According to InvestingPro data, the company faces significant challenges with its stock down over 70% in the past year, while showing concerning cash burn rates. According to a statement based on a recent SEC filing, the board appointed Christopher Thompson, M.D., as a Class I director, with a term set to expire at the company’s 2028 annual meeting of stockholders. Ian Sheffield was appointed as a Class II director, with a term expiring at the 2026 annual meeting. Sheffield will also join the board’s audit committee.

Both Thompson and Sheffield will participate in Fractyl Health’s Non-Employee Director Compensation Program. Each will receive an annual retainer of $43,500 for board service. Sheffield will receive an additional $10,000 annually for his role on the audit committee. As part of their initial compensation, both will be granted options to purchase 45,000 shares of the company’s common stock, with the exercise price set at the closing price on the date of grant. These options will vest in equal installments over three years, contingent on continued service.

The filing states there are no arrangements or understandings with other parties related to the appointments, and no reportable transactions between the company and either new director. Both have entered into the company’s standard indemnification agreement for directors.

Additionally, Amy W. Schulman has resigned as a Class I director and as a member of the Nominating and Corporate Governance Committee, effective Tuesday. The company noted that Schulman’s resignation did not result from any disagreement with the company or its board regarding operations, policies, or practices.

This information is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, Fractyl Health Inc. reported its second-quarter 2025 earnings, highlighting a notable rise in research and development expenses, which contributed to a widened net loss compared to the previous year. Despite these financial challenges, Fractyl Health has successfully extended its cash runway into 2026, providing some reassurance about its financial stability. In response to these developments, Canaccord Genuity adjusted its price target for Fractyl Health’s stock, lowering it from $12 to $6, while maintaining a Buy rating. The firm described the company’s financial report as "incremental" and noted that key timelines for Fractyl Health’s clinical programs are still on schedule. These updates reflect a cautious yet optimistic outlook from analysts regarding the company’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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