Cyclerion Therapeutics: Set to touch all-time low on mid-stage trial failures
30/10/2019 13:04
** Drug developer's shares CYCN.O plunge 66%, set to touch
an all-time low of $4.50 premarket after co's experimental
therapy fails two mid-stage studies
** Stock top pct loser across U.S. exchanges
** Co's praliciguat did not meet statistical significance in
the trials testing the therapy for diabetic kidney disease, and
on patients with a type of heart failure urn:newsml:reuters.com:*:nGNX9r6FgT
** Co also says plans to lay off about thirty full-time
employees mainly during Q4 to focus its resources on trials;
expects to incur severance-related charges of ~$3 mln
** Co, which was spun-off from drugmaker Ironwood
Pharmaceuticals IRWD.O , says it will discontinue development
of drug as treatment for heart failure patients urn:newsml:reuters.com:*:nGNX4n2xLF
** CYCN says it intends to reduce its monthly cash expenses
by 25% and expects its cash and equivalents balance of $125
million to be sufficient to fund operations through Q1 2021
** Up to Tuesday's close, stock had fallen 31% from its
opening price on April 2, when the company began trading on
Nasdaq
(Reporting by Saumya Sibi Joseph in Bengaluru)
((saumya.joseph@thomsonreuters.com))