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Reneo Pharma Trial Fails; Stock Plummets 81%

Says will lay off 70% of workforce

Irvine-based Reneo Pharmaceuticals Inc. (Nasdaq: RPHM) dropped 81% to $1.44 and a $48 million market cap after announcing the failure of its pivotal clinical trial.

The company said it will immediately start cost savings initiatives, including suspension of its ongoing mavodelpar development activities and a workforce reduction of approximately 70% of its workforce of 55 employees.

The company said its Stride study of mavodelpar in adult patients with primary mitochondrial myopathies did not meet its primary efficacy or secondary efficacy endpoints.

“Although the results of the Stride study were negative, the data generated are vitally important to the scientific community and we will make these data available once the final analyses are complete,” CEO Gregory J. Flesher said in a statement.

Reneo is testing a drug to treat rare genetic diseases, including primary mitochondrial myopathies (PMM). In more simple terms, the disease prevents people from metabolizing food in their bodies, meaning their muscles and other organs don’t fully develop.

The company said it currently has over $100 million in cash, cash equivalents, and short-term investments.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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