What happened
A significant miss on quarterly earnings combined with a big change in its C-suite put a damper on CymaBay Therapeutics (CBAY 0.03%) stock this week. According to data compiled by S&P Global Market Intelligence, the biotech's stock suffered an 11% decline over that stretch of time as a result.
So what
CymaBay, a clinical-stage biotech that concentrates on fighting liver and other chronic diseases, reported its first-quarter results on Monday. The pre-revenue company booked a loss of $28.7 million for the period, a slightly deeper shortfall than the first-quarter 2022 figure of $27.8 million. On a per-share basis, the former worked out to $0.29 per share.
Analysts were expecting CymaBay to do considerably better. On average, they were modeling a per-share net loss of only $0.09.
The biotech's earnings release also served as a business update for its shareholders and other interested parties. One encouraging piece of news is that the company agreed to a collaboration and licensing deal with Japan's Kaken Pharmaceutical. The arrangement covers CymaBay's leading pipeline drug, Seladelpar, which targets the liver affliction primary biliary cholangitis (PBC).
Now what
CymaBay also announced that it has drafted a new CFO, Harish Shantharam. The company says Shantharam "brings nearly 20 years of experience leading financial functions in biotech with a strong emphasis on setting strategy and building financial planning and accounting operations to prepare companies for commercial drug launch."
Shantharam's experience is certainly impressive, particularly since it includes a long stint at the prominent Gilead Sciences. Yet investors tend to be wary of executive transitions, worrying that they might indicate some level of instability in the top tiers of management.
