Axcella slips on plans to restructure, discontinue NASH drug trial

Axcella Health

15/12/2022 17:14

** Shares of drug developer Axcella Therapeutics Inc 
 AXLA.O  fall 24.9% to $0.67
    ** Co reports corporate restructuring and development
program re-prioritization to focus on its long COVID-19
treatment using experimental drug AXA1125  
    ** AXLA, however, to discontinue the drugs' ongoing
mid-stage clinical trial to treat patients with a type of fatty
liver disease called Nonalcoholic Steatohepatitis (NASH) 
    ** Co, although, keeps option to revisit NASH program, if
resource availability change 
    ** Co, as part of re-positioning and to align with its
current capital constraints, will reduce its workforce by 85%,
including departure of Chief Financial Officer Bob Crane 
    ** Trial data for NASH demonstrated relevant activity and
established a notable safety record for AXA1125, which was
applied to our clinical trial to treat fatigue in patients with
long COVID - Co 
    ** Axcella in August reported that the drug helped some
patients in a long COVID treatment mid-stage trial, but failed
to meet main goal
    ** AXLA is aiming to advance AXA1125 in Long COVID Fatigue
program into a potential registration trial 
    ** Including session's losses, stock down 67.9% YTD
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))