Lyra Therapeutics Announces Cost-Cutting Measures to Preserve Capital

Core Viewpoint - Lyra Therapeutics is implementing significant workforce reductions and cost-cutting measures to extend its cash runway and focus on ongoing clinical trials for its product LYR-210, a treatment for chronic rhinosinusitis (CRS) [1][3][4]. Group 1: Workforce and Cost-Cutting Measures - The company is laying off approximately 75% of its workforce, affecting 87 employees, and has halted manufacturing and commercialization efforts [1][3]. - Lyra Therapeutics is seeking to sublease its facilities to significantly reduce operating costs and has paused efforts for another product candidate, LYR-220 [3][4]. - These measures are expected to extend the company's cash runway into 2026, with approximately $87.1 million in cash, cash equivalents, and short-term investments as of March 31, 2024 [3]. Group 2: Clinical Trials Focus - Lyra is concentrating on two ongoing ENLIGHTEN Phase 3 trials for LYR-210, which is a bioabsorbable sinonasal implant for CRS treatment [2][5]. - The ENLIGHTEN 1 trial did not meet its 24-week primary endpoint, and the company is analyzing this data to inform the completion of the 52-week extension phase, with results expected in Q4 2024 [2][5]. - The ENLIGHTEN program includes two randomized, blinded, sham-controlled trials designed to evaluate the efficacy and safety of LYR-210 in 180 CRS patients who have failed medical management [5][6]. Group 3: Product Information - LYR-210 is designed to deliver six months of continuous anti-inflammatory medication (7500µg mometasone furoate) to treat CRS, which affects up to four million patients annually in the U.S. [7][9]. - The product is intended for patients who have not undergone ethmoid sinus surgery, while LYR-220 is designed for those with enlarged nasal cavities due to previous surgeries [9].