BenevolentAI (OTC:BAIVF), a pioneer in the application of advanced artificial intelligence for biopharmaceutical drug discovery, has announced a strategic update to its business priorities that will hone its focus on areas likely to provide the greatest return for shareholders.
Following a recent evaluation of its operational segments, it will now concentrate its efforts on AI-driven drug discovery collaborations (such as its tie-ups with AstraZeneca and Merck) and its proprietary pipeline- areas that have shown considerable success.
This shift comes after a detailed market assessment of its Knowledge Exploration Tools, which indicated a longer-than-anticipated timeline to achieve a significant financial return from this software as a service (SaaS) product. As a result, the development of these tools will be discontinued.
This streamlining process will result in a 30% reduction in headcount and a 20% decrease in cash burn, aimed at extending its financial runway through late to late in the third quarter of next year.
This is even after partial reinvestment of the savings into phase Ib/IIa-enabling studies for lead asset BEN-8744 (ulcerative colitis), following positive results from the phase Ia trial.
“While these situations are always difficult, as a company we have a duty to our shareholders to optimise capital allocation in the areas where we believe the potential return is the greatest," said the company's CEO Joerg Moeller.
"BenevolentAI (OTC:BAIVF) is an AI-augmented drug discovery company uniting science and technology with the aim to develop life-changing medicines for patients.
"Therefore, I believe that focusing our organisation on furthering our drug discovery collaborations and progressing our proprietary pipeline is the best way to achieve both the goal, of delivering value creation for our shareholders and delivering innovative medicines to patients suffering from very serious medical conditions."