Investing.com -- Shares of Prime Medicine , Inc. (NASDAQ: PRME ) tumbled 19.2% following the company’s announcement of a strategic restructuring aimed at focusing resources on large genetic liver diseases and cystic fibrosis, alongside a significant leadership transition.

The Cambridge-based biotech firm disclosed plans to deprioritize its Chronic Granulomatous Disease (CGD) programs and implement cost-cutting measures, including a workforce reduction of approximately 25%. This decision comes as part of an effort to concentrate on its liver franchise and programs funded through partnerships.

Prime Medicine is progressing with in vivo programs targeting Wilson’s Disease and Alpha-1 Antitrypsin Deficiency (AATD), with expectations to file an investigational new drug (IND) and/or clinical trial application (CTA) for its Wilson’s Disease program in the first half of 2026, and for its AATD program in mid-2026. Initial clinical data for both are anticipated in 2027. The company also continues its partnership with the Cystic Fibrosis Foundation and Bristol Myers (NYSE: BMY ) Squibb to develop Prime Edited CAR-T products.

In a leadership shake-up, Allan Reine, M.D., previously CFO, has been appointed as the new CEO, succeeding Keith Gottesdiener, M.D., effective immediately. Jeff Marrazzo, a board member, has been named Executive Chair. Dr. Reine emphasized the importance of positioning Prime Medicine to deliver on the promise of Prime Editing technology in addressing a spectrum of genetic diseases.

The restructuring is expected to reduce cash needs by nearly half through 2027, with the company’s current capital expected to fund operations into the first half of 2026. This announcement was made alongside initial positive data from the Phase 1/2 clinical trial of PM359, which provided clinical proof-of-concept for Prime Editing as a transformative gene editing technology.

Despite the initial positive data and the company’s commitment to its strategic programs, investors reacted negatively to the news of the restructuring and the uncertainty introduced by the executive changes. The market’s response reflects concerns over the near-term impact of the cost reductions and the potential disruption from the leadership transition.

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