Orphazyme A/S (ORPH), a biopharmaceutical company, is nose-diving in the premarket trading session. The stock has slumped 36.51% and consequently was trading at $0.80 when last checked. During Thursday’s regular trading session, the stock gained an increase of 5.88 percentage points to close the day at $1.26. The slide in the premarket trading session followed the announcement regarding the initiation of in-court restructuring of the company.
In-court Restructuring of OPRH
On Thursday, after the closure of the market, OPRH announced that the Board of Directors of the company had decided to file a petition for the in-court restructuring of the company. The move came as a result of the receipt of a negative trend vote, announced by the company on the 23rd of February 2022. Alongside that, the company’s financial position could also be seen as a reason behind the decision.
Deteriorating Financial Situation
In-court restructuring of OPRH is aimed at exploring whether all of the operations of the company could remain continued or not as the financial situation is on a sluggish side. The company would make sure to reduce 50% of its global workforce as part of the restructuring efforts. To reduce its costs, the company closed down the commercial operations in the UK, Germany, and the US.
Comments from CEO
Anders Vadsholt, Chief Executive Officer of OPRH, commented on the development that the company is forced to opt for some serious choices as a result of developments that took place in the UK and US. The company is faced with the gloomy prospect of losing its worthy employees, who have worked tirelessly to make the products of the company a worthwhile investment. Orphazyme would want to say thank you to them, for their constant commitment and dedication.
What’s Next for OPRH?
Looking ahead, analysts are of the view that primarily due to the current turmoil the company is facing; OPRH stock is depicting several negative technical indicators. As result, the stock is expected to decline in the next few weeks. Investors should take careful decisions regarding their investments.