© Reuters. Synlogic (SYBX) plunges as it ceases operations following decision to discontinue Synpheny-3 study
Synlogic (NASDAQ:) shares plunged by more than 50% Friday after the company decided to cease operations after discontinuing its Synpheny-3 study.
Synpheny-3 was the company’s ongoing pivotal study of labafenogene marselecobac as a potential treatment for phenylketonuria (PKU).
The company will now evaluate strategic options. The decision to end the Synpheny-3 study is based on the results of an internal review ahead of an upcoming independent Data Monitoring Committee (DMC) assessment, which indicated the trial was unlikely to meet its primary endpoint.
The company now plans to conduct an assessment of strategic options to enhance shareholder value, which will include an acquisition, merger, reverse merger, other business combinations, sales of assets, dissolution, or other strategic transactions.
Synlogic will cease operations and reduce its workforce by more than 90%, “retaining only certain employees to assist in the strategic review and assist in the discontinuation of the study.” Aoife Brennan is also departing the company and stepping down from the board.
SYBX’s cash, cash equivalents, and short-term investments balance on December 31, 2023, was $47.7 million.
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