Lykos to lay off 100 employees after MDMA drug setback; founder to exit board
Lykos to lay off 100 employees after MDMA drug setback; founder to exit board
Aug 15 (Reuters) – Lykos Therapeutics will lay off 75% of its workforce, or about 100 employees, and founder Rick Doblin will leave the board, the company said on Thursday, days after the U.S. FDA declined approval for its MDMA-based PTSD treatment.
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 (JNJ.N), 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 treatment for post-traumatic stress disorder, 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 problems with the trial design and a lack of documentation around whether participants had abused the experimental drug.
The company said it planned to ask the FDA to reconsider its decision and would attempt a resubmission to seek approval for the MDMA capsules.
