Axcella Therapeutics Puts Development Of NASH Program Aside, Reduces Workforce By 85% - Axcella Health Inc (OTC:AXLA)

Axcella Health Inc AXLA announced organizational and program updates, including a reprioritization of its programs for Long COVID Fatigue and Nonalcoholic Steatohepatitis (NASH) and a restructuring of operations.
Axcella's Phase 2a trial results demonstrate the potential of AXA1125 for Long COVID fatigue.
Subjects who received AXA1125 had improvements in mental and physical fatigue measures that were statistically significant and clinically relevant compared to those who received a placebo.
The company is engaged in ongoing and productive reviews with regulators in the U.S. and Europe, and the company is aiming to advance its Long COVID Fatigue program into a potential registration trial.
Axcella will discontinue its ongoing Phase 2b trial of AXA1125 in NASH while keeping the option to revisit this program should resource availability change.
Related: Axcella Shares Jump Despite Mixed Bag Data From Mid-Stage NASH Trial.
Axcella is reducing its workforce by 85%. Among the departing employees are Bob Crane, Chief Financial Officer, and Virginia Dean, Chief People Officer.
Axcella reached an agreement with SLR Investment Corp. (f/k/a Solar Capital Ltd) to pay down the debt obligations of the previous agreement.
The company has initiated a process to explore a range of strategic alternatives. It works with an investment bank as a strategic advisor for this process.
Price Action: AXLA shares closed at $0.89 on Wednesday.