Enlivex Announces Cost Reduction Plan to Focus Resources on Phase 2b Trial of Allocetra™ in Age-Related Primary Moderate-to-Severe Knee Osteoarthritis
Key Highlights
- ➤Workforce reduction approximately 60% under immediate cost reduction plan
- ➤Phase 2b trial resources prioritized; topline six-month data expected mid-2027
- ➤Management salaries cut 20%; CEO salary reduced 40%
- ➤Non-clinical R&D activities winding down to substantially reduce cash burn
Expert Statements
Oren Hershkovitz, Chief Executive Officer of Enlivex
“Our priorities are clear. The positive results from our Phase 1/2a trial of Allocetra™ and the U.S. Food and Drug Administration’s (FDA) Regenerative Medicine Advanced Therapy (RMAT) designation give us strong conviction in Allocetra's™ potential in treating knee osteoarthritis. We believe that the most important milestone ahead of us is the six-month topline data from our Phase 2b trial. By winding down non-clinical R&D, reducing our workforce, and having management, including myself, take substantial salary reductions, we are focusing our resources to reach that readout as efficiently as possible, which we expect by mid-2027.”
* Non-clinical R&D activities to be wound down; resources to be focused on executing the Phase 2b trial * Workforce reduced by approximately 60%; management and CEO salaries reduced * Plan designed to substantially reduce cash burn * Topline Phase 2b six-month endpoint data expected by mid-2027 Nes-Ziona, Israel, Oct. 19, 2026 (GLOBE NEWSWIRE) -- Enlivex Ltd. (Nasdaq: ENLV) ("Enlivex" or the "Company"), a quality longevity company powered by a prediction markets treasury, today announced a cost reduction plan, effective immediately, designed to substantially reduce the Company's cash burn and focus its resources on the execution of its Phase 2b clinical trial of Allocetra™ for the treatment of patients with moderate-to-severe age-related symptomatic primary knee osteoarthritis (OA). The Company expects to report topline six-month data from the trial by mid-2027.
The Company’s plan includes the following measures: * Wind-down of non-clinical R&D: The Company is winding down, effective immediately, all research and development activities not related to the Phase 2b clinical trial. * Focus on clinical execution: The Company's resources will be dedicated to the execution of the Phase 2b trial and related activities. * Workforce reduction: The Company is reducing its workforce by approximately 60%. * Management compensation reduction: Salaries for the Company's management team will be reduced by 20%, and the Chief Executive Officer’s will be reduced by 40%. Dr. Oren Hershkovitz, Chief Executive Officer of Enlivex, stated " Our priorities are clear. The positive results from our Phase 1/2a trial of Allocetra™ and the U.S. Food and Drug Administration’s (FDA) Regenerative Medicine Advanced Therapy (RMAT) designation give us strong conviction in Allocetra's™ potential in treating knee osteoarthritis. We believe that the most important milestone ahead of us is the six-month topline data from our Phase 2b trial. By winding down non-clinical R&D, reducing our workforce, and having management, including myself, take substantial salary reductions, we are focusing our resources to reach that readout as efficiently as possible, which we expect by mid-2027."
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