InflaRx shifts focus to lead drug, cuts costs by 30% to extend cash runway
Biopharma

InflaRx shifts focus to lead drug, cuts costs by 30% to extend cash runway

InflaRx is streamlining operations and largely discontinuing non-essential activities outside izicopan’s development

  • By IPP Bureau | January 11, 2026
InflaRx, a biopharmaceutical company developing anti-inflammatory therapies targeting the complement system, has announced a major strategic realignment.
 
The company is cutting costs, reducing its workforce, and concentrating resources on advancing its lead candidate, izicopan, as a potential best-in-class C5aR inhibitor for hidradenitis suppurativa (HS) and other inflammation and immunology (I&I) indications.
 
“In an effort to enable the long-term success of InflaRx we have made the decision to increase our capital efficiency and tightly focus the Company,” said Prof. Niels C. Riedemann, CEO and Founder. 
 
“Our goal with this realignment is to prioritize resources toward izicopan in hidradenitis suppurativa and additional areas in inflammation and immunology, allowing us to maximize its value as a significantly differentiated oral inhibitor of C5aR and pipeline-in-a-product. We are very optimistic about our strategy and the sizable potential of izicopan, and look forward to reporting additional progress during the year.”
 
As part of the restructuring, InflaRx is streamlining operations and largely discontinuing non-essential activities outside izicopan’s development. The company is cutting roughly 30% of its workforce and significantly scaling back spending on Gohibic (vilobelimab), its other therapeutic program. 
 
These changes are expected to trigger a one-time charge of about $7 million, primarily non-cash inventory write-offs, with a smaller portion covering restructuring and personnel costs.
 
InflaRx says these moves will result in a leaner cost structure, allowing for substantial and sustained reductions in operating expenses and extending the company’s cash runway to mid-2027.
 
The company emphasized that ongoing trials will continue uninterrupted. It will maintain operations for the BARDA-supported “Just Breathe” Phase 2 ARDS study and keep Gohibic available under emergency use authorization in the US. 
 
“We do not expect these actions to negatively impact the trial,” the company noted. InflaRx will also continue exploring partnership opportunities for Gohibic in the U.S. and Europe and plans discussions with the FDA regarding vilobelimab’s development in pyoderma gangrenosum.
 
InflaRx plans to channel resources toward izicopan, citing its promising PK/PD profile, differentiation as a C5a/C5aR inhibitor, and potential across multiple I&I indications, including HS and chronic spontaneous urticaria (CSU). The company is actively engaging with potential partners globally to accelerate development and maximize value.
 
In HS, InflaRx is advancing toward Phase 2b readiness and engaging the FDA on study design and endpoints. “The aim is to align on a development path and endpoints expected to meaningfully differentiate izicopan from existing therapies, while also addressing variability inherent in some HS trial outcomes,” the company said.

Upcoming E-conference

Other Related stories

Startup

Digitization