Frequency Therapeutics hits record low on plan to stop hearing treatment programs

Korro Bio

13/02/2023 16:38

(Updates)
    ** Shares of Frequency Therapeutics Inc  FREQ.O  fall as
much as 82.2% to hit record-low of $0.7 
    ** Stock set for worst day ever if losses hold
    ** Drug developer will stop further development of its drug
candidates for hearing loss and will immediately reduce
headcount as part of an overall restructuring, downsizing
personnel by about 55% 
    ** FREQ's decision to cease hearing loss programs comes
after its mid-stage trial testing FX-322 for treating
sensorineural hearing loss (SNHL) failed to achieve its primary
efficacy goal
    ** SNHL is a type of hearing loss caused by damaged hair
cells in the inner ear
    ** Data showed no statistically meaningful difference at Day
90 between those administered FX-322 vs those receiving placebo
in the proportion of individuals that demonstrated an
improvement in speech perception
    ** Co believes that the restructuring will generate
sufficient cost savings to extend its runway into 2025 and
enable it to complete a first clinical trial of its multiple
sclerosis (MS) program in H2 of 2024
    ** Stock down 83% in last 12 months
 (Reporting by Pratik Jain and Aditya Samal in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))