Cyclerion changes focus of drugs, announces job cuts; shares tumble
06/10/2022 18:11
** Shares of Cyclerion Therapeutics CYCN.O fall 43.63% to
53 cents - hitting lowest levels in 10 weeks
** Co announces strategic changes, says will focus on
developing treatments for rare mitochondrial diseases moving
ahead urn:newsml:reuters.com:*:nGNX4FNT14
** CYCN says new strategy based on positive data from
early-to-mid-stage trial of drug candidate CY6463 in clinical
studies in central nervous system diseases associated with
mitochondrial dysfunction
** Drug developer plans to cut workforce by nearly 45%, lay
off 16 full-time employees
** CYCN expects one-time charges of nearly $1.9 mln in Q4
2022, sees annual cash savings of nearly $4.1 mln from
restructuring
** Co looking to secure funding through partnerships, other
ways to further develop drug CY3018 in pre-clinical stage, as a
potential treatment for neuropsychiatric diseases
** Also plans to meet with U.S. Food and Drug Administration
in Q4 2022 to discuss CY6463 study
** Including session's fall, stock down ~69% YTD
(Reporting by Pratik Jain)
((Pratik.Jain@thomsonreuters.com;))