Eliem Therapeutics falls on pausing development of depression drug

Climb Bio

10/02/2023 14:08

** Shares of drug developer Eliem Therapeutics Inc  ELYM.O 
fall ~10% to $3 premarket 
    ** Co late on Thursday said it is pausing all further
developments of its experimental therapy, ETX-155, which was
being tested for treatment of major depressive disorder
    ** ELYM to not invest further in the study because of
current capital market conditions and investor sentiment - co
    ** Says it will cut workforce by ~55% in H1 this year as it
pauses development and plans to focus on another program for
potential treatment of epilepsy and pain
    ** Adds that CEO Bob Azelby will depart the company
imminently 
    ** Brokerage H.C. Wainwright downgrades rating on ELYM to
"neutral" from "buy"; says it was "surprised" by co's plan to
pause development of ETX-155
    ** ELYM shares up ~14% in the past six months 
 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))