Viracta Therapeutics Shuts Down Operations, Lays Off Entire Workforce

Viracta Therapeutics, a clinical-stage precision oncology company, has announced the termination of all employees and the initiation of a wind-down of operations1 2.

The company's board approved the shutdown on February 3, 2025, with the decision taking effect on February 5, 20251 3.

Viracta was delisted from Nasdaq on February 4, 2025, after failing to comply with the $1-per-share minimum requirement1.

Craig Jalbert, a restructuring expert, has been appointed as CEO, President, CFO, Treasurer, Corporate Secretary, and sole board member to oversee the wind-down process2 3.

The company is exploring potential strategic alternatives for its development programs, which focused on treating virus-associated cancers2 3.

Viracta anticipates incurring a one-time payment of $100,000 associated with the workforce termination1.

Prior to shutdown, Viracta's lead program was a combination of the HDAC inhibitor nanatinostat and the antiviral valganciclovir, which showed promise in treating Epstein-Barr virus-positive peripheral T-cell lymphoma1.

The closure follows multiple rounds of layoffs in 2024, including a 23% reduction in August and another 42% cut in November3.

Viracta's shutdown is part of a broader trend of layoffs and closures in the biotech industry, with several other companies also announcing cuts in early 20254 5.