Tempest Therapeutics, within days of announcing that it was exploring strategic alternatives, has laid off 80.7% of its workforce, which amounts to 21 of its 26 full-time employees.

The California-based noted in a recent SEC filing that it expects to incur about $1.5 million in costs in relation to the layoffs, which will be effective as of 30 April. Adding that the key staff among those being let go will transition to consulting agreements.

Earlier this month, Tempest released plans to “explore a full range of strategic alternatives”, including a merger or an acquisition. The company president and CEO, Stephen Brady noted that “the capital markets have been unavailable to support the next stage of advancement” for its two lead clinical candidates.

Adding, “given the positive data and commercial potential with this pipeline, as well as the clearance from FDA (US Food and Drug Administration) on the lead program’s pivotal study, we believe this is a rare opportunity for a partner.” 

Tempest’s clinical pipeline

The company’s lead candidate is a peroxisome proliferator-activated receptor alpha (PPARα) antagonist. Tempest has received clearance from the US FDA to start a Phase III trial (NCT06680258) evaluating the drug in combination with Roche’s Tecentriq (atezolizumab) and Avastin (bevacizumab) as first-line treatment of patients with unresectable or metastatic hepatocellular carcinoma (HCC).

Furthermore, in August 2024, the company announced that it has “received agreement from the US FDA on its Phase III study design, dose of amezalpat, and the statistical plan, including a pre-specified efficacy analysis that could shorten the time to primary analysis”.

In June 2024, Tempest announced the results from Phase Ib/II trial for amezalpat. The data revealed a 35% increase in overall survival (OS) when the drug was administered alongside Tecentriq and Avastin, compared to just Tecentriq and Avastin combination. Patients treated with the amezalpat regimen experienced a median OS of 21 months, while control group had a median OS of 15 months.

Tempest other clinical candidate is a selective dual EP2-EP4 prostaglandin receptor antagonist, TPST-1495. The company has received a “Study May Proceed” letter from the FDA to evaluate TPST-1495 in a Phase II trial for the treatment of familial adenomatous polyposis (FAP).

As of December 31, 2024, Tempest disclosed a net loss of $41.8 million and a cumulative deficit of $207.1 million, as noted in a March 27 SEC filing. The biotech ended the year with cash reserves totaling $30.3 million.