LENZ Therapeutics Reorganizes, Cuts Costs and Changes CEO

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LENZ Therapeutics announced a strategic reorganization on October 28 and said its chief executive, Eef Schimmelpennink, will step down on December 1, 2026. Chief Financial Officer Dan Chevallard becomes interim president and CEO on the same date. The news came with the company's third-quarter results.

The San Diego company sells VIZZ, a once-daily prescription eye drop for presbyopia, the age-related loss of near vision. The reorganization will put consumer marketing first and direct capital to the initiatives expected to lift sales most. LENZ expects it to cut projected annualized operating expenses for 2027 by more than 50%, to roughly $70 million to $75 million, not counting stock-based compensation.

The company plans to finish nearly all of the work in the fourth quarter of 2026. It estimates one-time net restructuring charges of about $5 million.

Quarter figures

Net product sales in the third quarter were $2.6 million, based on more than 38,000 paid prescriptions. Sales rose about 50% from the second quarter and prescriptions about 51%, with growth in both the ePharmacy and retail channels. Telehealth prescribing, launched in July, supplied more than 50% of the additional prescriptions. In the same month LENZ started a nationwide TV advertising campaign.

Selling, general and administrative expenses reached $35.8 million for the quarter, up from $27.6 million a year earlier. The company attributed the rise to its launch investment in marketing, advertising, sales infrastructure and headcount. Net loss was $31.0 million, or $0.99 per share. Cash and marketable securities stood at $197.3 million on September 30.

More than 60% of ePharmacy patients have bought more than one monthly pack of VIZZ. LENZ counts over 15,000 unique eye care prescribers since launch, more than 75% of whom prescribed multiple times.

The leadership change

Schimmelpennink has led LENZ for nearly six years and has more than 25 years in biotechnology. He said he is leaving "to devote more time to other passions." He will lead the company through the reorganization and stay on as a strategic advisor into 2027.

Board Chairman Jeff George thanked him for building LENZ from its Series A into a public company and taking VIZZ through clinical development, FDA approval and launch. Chevallard said the priorities are to raise consumer awareness, access and adoption of VIZZ and to use resources "with discipline."

Management was due to discuss the results on a conference call on October 29 at 8:30 a.m. EDT.

Source: LENZ Therapeutics