Lykos to cut 75% of workforce, founder to exit board after drug setback

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Aug 15 (Reuters) – Lykos Therapeutics will lay off 75% of its workforce and its founder Rick Doblin will be leaving the board, the company said on Thursday, days after the U.S. FDA declined approval for its MDMA-based treatment for post-traumatic stress disorder.
Lykos, formerly known as MAPS Public Benefit Corp, said it was bringing in David Hough, former vice president for research and development at Johnson & Johnson, to lead and oversee clinical development of the MDMA capsules.
Hough spearheaded the development of J&J’s nasal spray, Spravato, used to treat depression in combination with an oral drug.
He joins Lykos days after the U.S. Food and Drug Administration declined to approve its midomafetamine, or MDMA-based PTSD treatment, citing limited data.
Commonly known as ecstasy or molly, MDMA has long been seen by advocates as a potential treatment for mental health disorders.
The regulator’s decision was in line with the recommendations of its advisers, who flagged a lack of documentation around whether trial participants had abused the experimental drug and problems with the trial design.
The company said it planned to ask the FDA to reconsider its decision and would attempt a resubmission seeking approval for the MDMA capsules.
Jeff George, chairman of the Lykos board, said Hough was “the right person” to lead the crucial work of engaging with the FDA for the resubmission.
Lykos founder Doblin said he would continue to work towards developing global access to MDMA, adding he could speak freely as a public advocate by resigning from the company’s board.
Lykos said it planned to cut 75% of it workforce, but did not provide details about the number, nature or location of jobs that would be affected. It did not immediately respond to a Reuters request for details.
The company said the remaining 25% of its workforce would focus on developing the MDMA-based capsules and engaging with the FDA about next steps in the resubmission process. (Reporting by Christy Santhosh in Bengaluru; Editing by Pooja Desai)