CYCN - Cyclerion stock tanks 32% on workforce reduction clinical development refocus

• Cyclerion Therapeutics ( NASDAQ: CYCN ) on Thursday said it would reduce its workforce by about 45% as part of a strategic prioritization to focus its resources on the development of its therapy CY6463 for the treatment of mitochondrial diseases.
• Shares of the micro-cap clinical-stage biopharma slumped 32% to $0.64 in morning trading.
• CYCN said it expects to take a one-time charge related to the workforce reduction of about $1.9M that would be incurred primarily in Q4 2022.
• The company will first concentrate its development of CY6463 for MELAS, which is a mitochondrial disease that primarily affects the nervous system and muscles.
• CYCN plans to meet with the U.S. FDA in Q4 to discuss the MELAS development program.
• The company also said it intends to leverage its other clinical assets through licensing agreements and partnership.

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