Synlogic sinks after scrapping lead drug study

Synlogic

09/02/2024 11:57

** Shares of Synlogic  SYBX.O  fall 58.3% to $1.44 premarket
    ** Co said after markets closed on Thursday it will end a
late-stage study testing its lead drug candidate to treat
Phenylketonuria (PKU) after an internal review showed it was
unlikely to meet main study goal   
    ** PKU is an inherited metabolic disorder that increases the
levels of a substance called phenylalanine in the blood,
potentially causing intellectual disability
    ** H.C. Wainwright analyst Ed Arce says the decision to end
the trial was "surprising"
    ** Brokerage downgrades SYBX rating to "sell" from "buy" and
removes PT on co; says stock is "set to be essentially a shell"
    ** SYBX plans to explore strategic options including an
acquisition, merger, sales of assets, or dissolution  
    ** Co to reduce workforce by more than 90%, with majority of
impacted roles to end in February 
    ** Up to last close, stock fell 74% in the last 12 months 

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))