Shares of Frequency Therapeutics Inc. lost more than three-fourths of their value and hit an all-time low in early trading Monday after the regenerative-medicine company scrapped its lead program following a Phase 2b study failure.
Frequency said it is ending development of FX-322 after the drug candidate missed the primary and secondary endpoints in the study in individuals with acquired sensorineural hearing loss, a type of hearing loss that occurs from damage to the inner ear.
The Lexington, Mass., company also threw in the towel on FX-345, a second candidate to treat sensorineural hearing loss, and said it would cut its workforce by 55% in a restructuring.
Frequency said it now plans to focus on remyelination program for multiple sclerosis and to explore strategic financing alternatives, adding that it expects the restructuring will extend its current cash runway into 2025.
Frequency shares were recently changing hands at an all-time low of 85 cents, down 78%, after falling to 70 cents, their lowest level since the company went public in October 2019, early in the session.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 13, 2023 09:52 ET (14:52 GMT)
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