More redundancies are planned at BenevolentAI while the BioTech firm’s restructure is also expected to see it delist from the Euronext exchange in Amsterdam.
Founder Kenneth Mulvany, who led a boardroom coup earlier this year and subsequently helped to narrow losses at the MedTech before returning to the helm as executive chairman, outlined plans to “return to our original mission”.
Mulvany founded BenevolentAI in 2013 when the sector was in its infancy and grew the company into a market-leading position. He left the board in 2022 when it listed on the Euronext via a SPAC merger which valued it at more than £1 billion.
However the company endured a dramatic fall in share price as it moved from its foundational objective of helping pharmaceutical partners to discover and develop transformative drugs and towards developing its own pipeline.
Lucy Jung: From brain tumour to fixing ‘capital city of social inequality’
The major strategic overhaul will see London-headquartered BenevolentAI reallocate investment to reinforce its foundational technology strengths. “Going forward, while we will maintain our existing drug development partnering strategy for clinical-stage and late pre-clinical/IND ready programmes, we will significantly reduce our balance sheet risk by partnering our earlier-stage assets sooner in their development cycle,” it stated.
“In parallel, and to support this, the company has initiated significant organisational and budgetary changes that extend the company’s runway into 2027.
“Furthermore, following thorough review and deliberation, the board has concluded that it is in the best interests of the company to evaluate delisting from Euronext Amsterdam. The substantial costs associated with maintaining public status divert resources away from our core activities.”
Paris MedTech AQEMIA expands to London as funding tops $100m
It added: “Transitioning to a private company would grant greater operational agility and reduced corporate complexity, enabling the company to better lead the dynamic TechBio sector it has helped to pioneer and develop over the last decade.”
In May 2023 the MedTech announced plans to lay off 180 staff, with planned cost savings of £45m intended to extend its cash runway to at least July 2025, while in April 2024 the company revealed plans to slash more jobs and close its US office.
“For over a decade, BenevolentAI has been dedicated to advancing AI-driven drug discovery, a field that was once revolutionary, is now a fundamental expectation for modern R&D organisations,” said Mulvany this week. “Despite widespread industry adoption, many companies still struggle to effectively develop these capabilities.
“With our extensive experience and numerous successes, we are uniquely positioned to lead the next generation of tech-bio innovation.
Former Babylon UK chief appointed CEO at Doctor Care Anywhere
“Having worked tirelessly to rejoin the board, I have directed the company’s focus back to our core mission – technology in service of science. Our strategic direction builds on our strengths, empowering the biopharma industry with cutting-edge AI technologies backed by our compelling industry and patient proof points.
“Since rejoining the board, I have initiated a new roadmap that returns our technologies to more adaptable, standalone products tailored to meet our partners’ drug development needs. This ensures quicker integration and versatility across various phases of the development process.
“Reshaping BenevolentAI involved tough but necessary decisions to strategically allocate finances, enhance efficiency, refocus business development, and invest in targeted product initiatives. These challenging decisions are vital to enable sustainable growth and deliver value to our shareholders, partners, and the patients we ultimately serve.”
Mulvany is also known for his role as the founder and CEO of Proximagen Group plc, a London-listed BioTech company specialising in the development of medicines to treat neurodegenerative diseases. Under his leadership, Proximagen undertook a dozen successful corporate transactions including public and private M&A, financings, and licensing deals. In 2012, Proximagen was sold to Upsher-Smith Laboratories for $553m in one of the largest all-cash BioTech exits at that time.
Peter Allen, non-executive director and deputy chair at BenevolentAI, commented: “The board is wholly behind this strategic direction and restoration of the business to its TechBio roots.
“We have conducted a comprehensive review of every aspect of the company’s spending to ensure alignment with its foundational principles of entrepreneurial leadership, lean operations, and sharp commercial focus. These principles are designed to benefit shareholders, business partners, and ultimately patients.”