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.
