AEON Biopharma, Inc. (AEON) announced on Wednesday a workforce reduction of approximately 55% as part of its strategic reprioritization and cost containment plan. Effective May 17, Peter Reynolds has been terminated from his roles as chief financial officer, principal financial officer, and principal accounting officer to align with the company's cash preservation strategy.
In pre-market trading on the NYSE, AEON shares surged by around 17%, reaching $1.61, following a 22.5% decline in share value at Tuesday's close.
The clinical-stage biopharmaceutical company, which is focused on developing its proprietary botulinum toxin complex, revealed these plans as it explores financing options to support the next steps in its late-stage clinical pipeline for ABP-450, targeting multiple indications. These measures are expected to extend the company's cash runway into the fourth quarter of 2024.
The company stated that effective May 17, the Board has appointed Marc Forth, AEON's current president and CEO, as the principal financial officer, and Jennifer Sy, the company's corporate controller, as the principal accounting officer. Forth and Sy will continue in their existing roles while also assuming these new responsibilities. The cost reduction measures, including additional operating expense cuts, are anticipated to be substantially completed by June 2024.
Moreover, after a topline interim analysis failed to meet its primary or secondary endpoints, the company has discontinued the Phase 2 study of ABP-450 for the prevention of chronic migraine. Enrollment and dosing of patients in the associated migraine open-label extension study have also been halted. Patients from both studies will be monitored for safety over a 12-week period following their last treatment, and the company will continue its interim data analysis.
Marc Forth commented, "Following a strategic review of our resources, we made the decision to implement several cost reductions that will preserve cash while still supporting corporate activities. Upon securing additional capital, we would be positioned to announce a revised clinical development strategy for our pipeline of ABP-450 programs. We look forward to keeping shareholders apprised of our progress."
