Quince Therapeutics Inc (NASDAQ:QNCX) saw a steep decline in its share price Tuesday morning, dropping 39.5% in premarket trading after the company disclosed it is evaluating strategic alternatives following the failure of its lead drug candidate.
The clinical-stage biopharmaceutical confirmed that eDSP, its lead candidate, did not achieve either the primary or secondary endpoints in the NEAT clinical trial for ataxia-telangiectasia (A-T). The company said it currently has no other candidates in its development pipeline and lacks sufficient resources to continue research and development activities for the program.
To assess possible paths forward, Quince has retained LifeSci Capital as a financial adviser to evaluate strategic options. The company said these alternatives could include a reverse merger, among other transactions meant to address its position.
Quince provided preliminary financial figures showing about $5.8 million in cash and cash equivalents and roughly $11.9 million in short-term investments as of December 31, 2025. At the same time, the company reported $16.4 million outstanding under an unsecured line of credit with the European Investment Bank.
Adding to its operational constraints, Quince's share price has been below $1.00 since January 29, 2026. The firm warned that continued low trading levels place it at risk of delisting from the Nasdaq Global Select Market, a development it said would negatively affect its ability to complete a reverse merger transaction.
To fund the evaluation and potential execution of strategic alternatives, Quince indicated plans to seek additional capital through public offerings of common stock or through private financing of debt or equity. The company cautioned, however, that there is "no guarantee" it will be able to obtain such financing on acceptable terms or at all.
Quince also drew attention to the possibility of insolvency if it cannot complete a transaction that resolves its outstanding liabilities. The company stated it may need to pursue bankruptcy protection and that in such a restructuring or similar scenario, common stockholders would "likely not receive any value or payments."
Context and implications
The failure of the NEAT trial removes Quince's only active development program, leaving the company reliant on external financing or a strategic transaction to continue operations. The engagement of a financial adviser signals an active search for solutions, but financial and market constraints present material obstacles to execution.
Investors and counterparties will be watching closely for any financing announcements, proposed transactions, or regulatory developments related to Nasdaq listing status that might alter the company's path forward.
Direct company statements quoted
"no guarantee"
common stockholders would "likely not receive any value or payments in a restructuring or similar scenario."