Frequency Therapeutics slumps on layoffs, plan to stop hearing loss treatment programs

Korro Bio

13/02/2023 14:18

** Shares of drug developer Frequency Therapeutics Inc
 FREQ.O  fall 79.64% at $0.8 before the bell 
    ** Co 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 MS program
in 2H 2024
    ** In 2022, the drug developer's stock fell 24.95% 
 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))