Applied Molecular Cuts Its Workforce By 40%, Pauses Early-Stage Research Programs

Applied Molecular Transport Inc AMTI will prioritize the advancement of AMT-101 into late-stage clinical development.
It is preparing for the end of Phase 2 meetings with the FDA to advance AMT-101 to Phase 3 in chronic pouchitis.
Applied Molecular is evaluating the next steps for AMT-126, which recently demonstrated safety and tolerability in a Phase 1a trial in healthy volunteers.
The company will pause earlier-stage research programs and activities.
Related: Applied Molecular's AMT-101 Shows Favorable Clinical Activity, Safety Profile In Inflammatory Bowel Disease.
It has named Shawn Cross the president and chief operating officer, and Brandon Hants will assume the role of chief financial officer.
Randy Mrsny is stepping down as the chief scientific officer.
Applied Molecular is reducing its workforce by approximately 40% to 81 full-time employees and is focused on executing late-stage clinical trials and related CMC activities.
The company expects to record a one-time charge, primarily related to severance, in Q2 of 2022.
The strategic prioritization extends the estimated cash runway into 2024.
Earlier, the company estimated its cash balance of $126.5 million to fund its current operating plan for at least twelve months.
Price Action: AMTI shares are down 11.10% at $3.80 during the market session on the last check Wednesday.