Allena Pharma: Falls after announcing cost-cutting measures

Allena Pharmaceuticals

05/12/2019 17:37

** Kidney drug developer's  ALNA.O  shares fall 11.5% to
$2.05
    ** Company announced several cost-cutting measures on
Wednesday after market, as its current cash and cash equivalents
will suffice only till Q4 of 2020  urn:newsml:reuters.com:*:nGNXb1dd06
    ** ALNA plans to reduce its workforce to bring down salary
and compensation-related expenses by ~30% 
    ** Other cost-cutting measures include delaying additional
planned investments in manufacturing
    ** Company had hit a record-low in Nov. after results of the
first late-stage trial of reloxaliase, its lead experimental
treatment targeting enteric hyperoxaluria (EH), did not meet
investor expectations, despite meeting trial's main goal
 urn:newsml:reuters.com:*:nL3N27N4MP
    ** Hyperoxaluria is a metabolic disorder in which the urine
has higher-than-normal oxalate levels, which can cause kidney
stones; EH is a severe subset of hyperoxaluria
    ** Company plans to approach FDA in early 2020 for design
changes and regulatory permissions for its ongoing second
pivotal trial of reloxaliase
    ** ALNA also plans to approach regulatory agencies in Q1
2020 for early approval of reloxaliase as a treatment for EH
patients with chronic kidney disease
    ** Company to explore financing options and business
development partnerships
    ** Up to Wednesday's close, stock had fallen ~65% since ALNA
released results of its first pivotal trial of reloxaliase in
November

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com;))