Shares of Athersys Inc. have rebounded since losing two-thirds of their value last month after the Cleveland company announced clinical trial results that disappointed some investors.
By Thursday, shares of the regenerative medicine company had risen 23% since bottoming at 26 cents on May 20, the day of the clinical trial announcement.
In mid-May, the regenerative medicine company reported that MultiStem — its adult stem cell therapy — fell short of its primary goal in a clinical trial with elderly stroke patients in Japan.
Though the Cleveland company explained why the results of the Japanese trial, conducted by partner Healiios KK, suggested a "high potential for success" in its ongoing clinical trial in North America and Europe, some investors sold their Athersys shares, sending their price down 66%.
At that time, Athersys already was looking for ways to bring its share price above $1 so it would comply with Nasdaq listing requirements.
And on June 2, the company said it would restructure, including cutting its workforce by 70%, to reduce costs and make the company an attractive investment for potential financial or strategic partners.
The restructuring, which will take out three of the company's chief officers — one of whom co-founded Athersys in 1995 — by the end of June, also is aimed at moving the company's operations down the commercialization path and away from research and development.
A week later, Athersys postponed its annual meeting for more than a month so the company could add a shareholder proposal authorizing its board to effect a reverse stock split of its shares in an effort to raise their price.
Daniel Camardo, the pharmaceuticals and biotech leader hired as CEO of Athersys in January, remains excited by the potential of MultiStem to help ischemic stroke patients and those in other clinical-care areas, such as acute respiratory distress syndrome.
"I'm confident that our revised strategy and focus, executed by the remaining committed team, puts us on the right path for future opportunities," Camardo said in a June 2 statement.
Athersys has been working to commercialize MultiStem for more than 15 years and does not have a commercial product.
The company's shares (Nasdaq: ATHX) were down 4.5% to 30.5 cents in mid-afternoon trading on Friday.
