| Item 2.05 |
Costs Associated with Exit or Disposal Activities. |
On August 1, 2024, the Board of Directors of Repare Therapeutics Inc. (the “Company”) approved a strategic reprioritization of its research and development activities to focus its efforts on the advancement of the Company’s portfolio of four clinical programs (the “Plan”). As part of the Plan, the Company plans to reduce its overall workforce by approximately 25%, with the majority of the headcount reductions from the Company’s preclinical group, with affected employees notified on August 28, 2024.
The Company expects to recognize total charges in connection with the Plan in the range of approximately $1.5 million to $2.0 million, consisting of one-time cash charges for termination benefits. The Company expects that the implementation of the workforce reduction, including related-cash payments, will be substantially complete by the end of the third quarter of 2024.
| Item 7.01 |
Regulation FD Disclosure. |
On August 28, 2024, the Company issued a press release announcing the Plan. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
The Company believes that its cash runway will be sufficient to fund its operations into the second half of 2026, which reflects estimated annual cost savings of approximately $15.0 million provided by implementation of the Plan and related workforce reduction.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this Current Report on Form 8-K contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and securities laws in Canada. All statements in this Current Report on Form 8-K other than statements of historical facts are “forward-looking statements. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this Form 8-K include, but are not limited to, statements regarding: the Plan and its expected impact on the Company’s operations and financial position, including with respect to anticipated cost savings and the Company’s anticipated cash runway; and the Company’s future plans, including plans for its portfolio of clinical-stage oncology programs. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this Current Report on Form 8-K. Each of these forward-looking statements involves risks and uncertainties that could cause the Company’s clinical development programs, future results or performance to differ materially from those expressed or implied by the forward-looking statements. Many factors may cause differences between current expectations and actual results, including: the Company’s ability to implement the Plan as currently contemplated; the actual charges and cash expenditures associated with the Plan being higher than anticipated or changes to the assumptions on which the estimated charges and cash expenditures associated with the Plan are based; the Company’s ability to achieve projected cost savings in connection with the Plan; the Company’s failure to realize the expected benefits of the Plan and/or the Company experiencing unintended consequences from the Plan that may impact the Company’s business. Other factors that may cause the Company’s actual results to differ from those expressed or implied in the forward-looking statements in this Current Report on Form 8-K are identified in the section titled “Risk Factors” in the Company’s Annual
