Axcella Announces Series Of Organizational And Program Updates; Reduces Workforce By 85%

(RTTNews) - Axcella Therapeutics (AXLA) announced a series of organizational and program updates, including a reprioritization of its programs for Long COVID Fatigue and Nonalcoholic Steatohepatitis or NASH and a restructuring of operations to support its streamlined set of priorities.

The company is reducing its workforce by 85 percent, retaining certain employees to execute the strategic process. Among the departing employees are Bob Crane, Chief Financial Officer, and Virginia Dean, Chief People Officer, Axcella said in a statement.

Axcella said it 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 noted that it will discontinue its ongoing Phase 2b clinical trial of AXA1125 in NASH, while keeping the option to revisit this program should resource availability change.

Axcella reached an agreement with SLR Investment Corp. to paydown the debt obligations of the previous agreement.