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Women’s health company Obseva to wind down, lay off staff

Dive Brief:

  • ObsEva, a women’s health drug developer, on Wednesday said it plans to wind down its business and let go of all its employees.
  • The company notified the Swiss stock exchange that it might not have the resources to put together its financial statements for 2023, nor maintain its listing. In January, the company was granted a “moratorium” during which its creditors are limited from making claims while it considers a restructuring or liquidation.
  • ObsEva has been trying to negotiate a deal for its drug nolasiban, which is meant to help improve the chances of a successful pregnancy through in vitro fertilization. But the company’s dwindling cash has weakened its “ability to keep operating the company with existing workforce,” CEO Fabien de Ladonchamps said in a statement.

Dive Insight:

ObsEva’s planned wind-down follows several difficult years.

In 2022, after negative feedback from the Food and Drug Administration and a delisting threat from the Nasdaq stock exchange, ObsEva said it would cut 70% of its workforce in an effort to stay afloat. Soon after, the company’s chief scientific officer and head of R&D resigned.

Not much later, ObsEva decided to drop another asset — a drug for preterm birth — by selling rights to Xoma Corp.

Those moves didn’t prevent further reorganization, however. Early this year, ObsEva announced it was consolidating its operations in Switzerland to preserve cash and focus on nolasiban. In March, ObsEva received another notice from the Nasdaq warning it would be delisted on March 23.

ObsEva CEO Ladonchamps, who had previously worked at the company for nearly a decade, joined as CEO in May. Six months later, ObsEva sought court protection so it could focus on negotiating “advantageous deals.”