Aeon Biopharma Inc. (NYSE: AEON) announced a cost reduction plan that includes stopping research on its migraine drug and cutting half of its workforce.
Shares of the Irvine-based clinical-stage biopharmaceutical firm rose 18% to $1.63 and a $64 million market cap.
Aeon terminated Peter Reynolds as chief financial officer. It appointed Chief Executive Marc Forth as principal financial officer and Controller Jennifer Sy as principal accounting officer. Before the cuts, Aeon had 10 employees.
The company said its current cash and cash equivalents will be enough to fund operations until the fourth quarter. It reported $1.6 million in cash and equivalents as of March 31.
Aeon shares fell 50% to $1.70 on May 3 after the company announced its Phase 2 trial to treat migraines failed to meet its primary endpoint. The shares had topped $16 each as recently as March.
“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,” Forth said in a statement. “Upon securing additional capital, we would be positioned to announce a revised clinical development strategy for our pipeline.”
