Shares of Zentalis Pharmaceuticals hit an all-time low as the co-founder announced his resignation as chief scientific officer and the company reported a wider loss in the third quarter. The stock plummeted by 28% to reach a low point of $12.80, with a year-to-date decline of over a third.
Leadership Change
Zentalis Pharmaceuticals revealed on Monday that Kevin Bunker, the current chief scientific officer, will step down from his position at the end of the year. Mark Lackner, the chief translational officer, will be taking over as his successor.
Financial Losses
During the third quarter, Zentalis recorded a loss of $55.5 million, compared to a loss of $54.4 million in the same quarter last year. The per-share loss for the quarter amounted to 79 cents, which is an improvement from the 96 cents loss per share last year due to a lower count of outstanding shares.
Increased Overhead Costs
The company also experienced a surge in overhead costs, which were $4 million higher at $16 million in total. This increase was primarily driven by rising personnel expenses and greater costs associated with facilities and outside services.
These recent developments pose significant challenges for Zentalis Pharmaceuticals. It remains to be seen how the change in leadership and financial struggles will impact the company’s future prospects.
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