Flex Pharma to slash 60% of workforce, consider sale or merger
Flex Pharma, a biotechnology company based in Boston, will lay off 60 percent of its workforce by the end of June and is considering a sale or merger to remain afloat, after ending a midstage trial of its lead drug over tolerability concerns, according to a Nasdaq report.
The company halted the trial of FLX-787, which was intended to treat amyotrophic lateral sclerosis and a neurological disorder called Charcot-Marie-Tooth disease, on June 13. It cited "oral tolerability concerns," which indicated that more dose-ranging studies are in order before trials can continue.
As a result, Flex will cut its workforce by 60 percent, and its board is considering a potential sale or merger to remain afloat. While the company expects to incur one-time costs of about $1.1 million or less under the workforce restructuring plan, Flex expects to see costs savings in the third quarter of 2018.
The company will continue to operate with a smaller team to discuss the future of FLX-787.
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