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Flex Pharma to cut more than half its workforce, end a phase 2 trial

Flex Pharma Inc. FLKS, -0.24% said Wednesday it'll lay off greater than part its employees, because it ends its segment 2 scientific trial of FLX-787 in amyotrophic lateral sclerosis and Charcot-Marie-Tooth because of oral tolerability concerns. The biopharmaceutical corporate's stock used to be halted for information till 7:30 a.m. ET. The corporate said trial data displays that FLX-787 has clear possible to cut back cramps and spasms in patients with more than one sclerosis and ALS. "However, recent observations of oral intolerability at the current dose and formulation, in a subset of patients, in both studies, indicate that more formulation and dose-ranging studies are required, which is challenging for the Company based upon our current resources," said Chief Executive Bill McVicar. The corporate said it has determined its best possible path forward is to evaluate strategic choices, together with the potential sale of the company. Flex Pharma said it'll cut back its team of workers by means of about 60% as a part of a restructuring to chop prices. The stock had climbed 20% yr up to now via Tuesday, whilst the iShares Nasdaq Biotechnology ETF IBB, +0.85% had gained 3.nine% and the S&P 500 SPX, +0.17% had complex four.2%.