ATAI - Atai stock rises amid restructuring with ~30% job cuts

2023-03-06 07:44:23 ET

Atai Life Sciences ( NASDAQ: ATAI ) has reduced its workforce by ~30% as part of a strategic review, the company said while providing other clinical and corporate updates.

Atai noted that the decision to reduce workforce was taken after a strategic review of its pipeline and to enhance operational efficiency and focus.

The majority of the cost savings will be due to workforce reduction in general and administration and non-clinical development, according to the company.

Atai expects its cash runway to now extend into H1 2026.

In January, Atai's majority-owned unit Perception Neuroscience's therapy PCN-101 (R-ketamine) did not meet the main goal of a phase 2a trial in treatment-resistant depression which sent the stock tumbling down.

Atai said on Monday, that it will continue to support Perception's development of PCN-101 through the IV-to-subcutaneous bridging study, which is expected to be completed in the middle of 2023.

Atai noted that it continues to work with Perception to explore strategic partnership options.

In addition, Atai said the first patient was recently dosed in a phase 2b study of RL-007 in patients with cognitive impairment associated with schizophrenia (CIAS). Initial data from the trial are expected in H2 2024.

The company plans to progress GRX-917 in a phase 2 trial in an anxiety disorder as the next step in clinical development

Atai noted that it February it announced the acceleration of a a pivotal trial 1 (COMP 005) part of a phase 3 program in treatment-resistant depression. Top line data is expected in the summer of 2024.

COMP360 is a potential psilocybin therapy for treatment-resistant depression, as per the company.

ATAI +3.85% to $1.62 premarket March 6

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