Trevena to restructure, halt investment in early stage research
Trevena announced an update to its strategy to focus its resources on the potential approval and commercialization of OLINVO in the United States. With this strategic re-positioning, the company is halting its investment in early stage research. The company intends to complete the ongoing Phase 1 trial of TRV250 for acute migraine, after which it will assess options for further development of this asset, as well as for its series of novel S1P modulators for neuropathic pain. As part of this plan, the company is reducing its workforce by approximately 30%, or 21 full time employees, predominantly from its research team. As part of this, Chief Scientific Officer Michael Lark, Ph.D., will depart the company in mid-December. The company estimates this reduction in force, along with other cost savings initiatives, will reduce cash expected to be used in operating activities over the next three calendar years by approximately $40M. The company also expects to incur a charge in Q4 of approximately $2.0M related to the reduction, of which approximately $1.7M is a cash charge relating primarily to severance costs and related expenses.