Eliem Pauses Development On Depression Drug, Lays Off 55% Workforce - Eliem Therapeutics (NASDAQ:ELYM)

Eliem Therapeutics Inc ELYM announced reprioritizing its pipeline to focus on its high potential preclinical Kv7.2/3 program (Kv7 Program) and the development of its lead Kv7.2/3 candidate, ETX-123.
Kv7.2/3 is a target with clinical validation in epilepsy and pain, with further potential in depression disorders.
Eliem has identified multiple Kv7.2/3 modulators in a novel and highly differentiated chemical space, and its lead candidate, ETX-123, has demonstrated favorable potency, selectivity, and in vivo anticonvulsant activity.
The company plans to commence a first-in-human Phase 1 trial in the first half of 2024.
The company will pause all further development of ETX-155, a GABAA receptor positive allosteric modulator neuroactive steroid (GABAA PAM) phase 2-ready for major depressive disorder (MDD), with the potential to also pursue development in epilepsy.
Related: Eliem Therapeutics Outlines Interim Data From Early-Stage Depressive Study.
As part of the reorganization, Eliem Therapeutics will reduce its workforce by approximately 55% in the first half of 2023.
The company will retain its core R&D team, led by Valerie Morisset, EVP R&D, and Chief Scientific Officer.
Bob Azelby, president & CEO, will be departing the company and the Board imminently, and Andrew Levin, the current Chairman, has been appointed as Executive Chairman.
In addition, Erin Lavelle, executive vice president, chief operating officer, and chief financial officer, and Jim Bucher, executive vice president, and general counsel, will depart the company following a short transition period.
Price Action: ELYM shares are down 10.20% at $3.00 premarket on the last check Friday.

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