InflaRx N.V. announced a 30% reduction in its workforce and a series of spending cuts designed to extend the company’s cash runway into mid‑2027. The restructuring will concentrate resources on the oral C5aR inhibitor izicopan, the company’s lead product candidate for hidradenitis suppurativa, while scaling back activities outside that program.
The company’s CEO, Prof. Niels C. Riedemann, explained that the move is intended to sharpen focus on izicopan and eliminate non‑essential functions. A one‑time charge of $7 million—primarily a non‑cash inventory write‑off of vilobelimab and related personnel costs—will be recorded in the current period. The write‑off reflects the decision to reduce investment in vilobelimab after the Phase 3 trial for pyoderma gangrenosum was halted for futility.
InflaRx will continue to support the BARDA “Just Breathe” ARDS platform and keep vilobelimab available under emergency use authorization, but the company is scaling back its broader complement‑targeting portfolio. The shift signals a move from a diversified asset base to a concentrated, cash‑efficient strategy that prioritizes the most promising pipeline asset.
Financially, the company has been operating with a negative EBITDA of $55.34 million over the last twelve months, underscoring the urgency of the cost cuts. By trimming headcount and reducing discretionary spend, InflaRx aims to preserve liquidity while advancing izicopan into Phase 2b studies for hidradenitis suppurativa. The company’s management believes that a focused investment in izicopan will deliver higher returns and accelerate the path to commercialization.
Investors have reacted negatively to the announcement, reflecting concerns about the scale of the restructuring and the company’s ongoing cash burn. However, management maintains confidence that the streamlined organization will position InflaRx to execute its clinical roadmap and ultimately generate sustainable revenue from izicopan.
The restructuring also highlights the broader market dynamics facing biopharmaceuticals: high development costs, regulatory hurdles, and the need for disciplined capital allocation. By narrowing its focus, InflaRx seeks to mitigate risk and create a more predictable financial trajectory for the next 18‑24 months.
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