Lyra Therapeutics Announces Cost-Cutting Measures to Preserve Capital

WATERTOWN, Mass., May 21, 2024 (GLOBE NEWSWIRE) -- Lyra Therapeutics, Inc. (Nasdaq: LYRA) (“Lyra” or the “Company”), today announced that it is advancing its goal to preserve capital by implementing a layoff of approximately 75% of its workforce, in addition to other cost-cutting measures.

In the near term, Lyra Therapeutics will focus on the two ongoing ENLIGHTEN Phase 3 trials evaluating LYR-210, a bioabsorbable sinonasal implant for the treatment of chronic rhinosinusitis (CRS). Lyra continues to analyze the data from the ENLIGHTEN 1 trial, which did not meet its 24-week primary endpoint. The Company intends to use this analysis to inform its approach on the completion of the 52-week extension phase of the ENLIGHTEN 1 trial with data expected in Q4 2024 and its approach to the ongoing ENLIGHTEN 2 trial.

In connection with the reduction in force, which impacts 87 employees, Lyra Therapeutics has stopped manufacturing and commercialization efforts and seeks to sublease its facilities to significantly reduce the Company’s operating costs. Furthermore, Lyra has paused efforts for LYR-220. These measures are expected to extend Lyra’s cash runway into 2026. As of March 31, 2024, prior to the reduction in force, Lyra Therapeutics had approximately $87.1 million in cash, cash equivalents and short-term investments, and the Company will provide an update when it reports its second quarter 2024 financial results.

“As we streamline our operations to focus on our ongoing clinical trials, we are taking aggressive measures to extend our cash runway,” said Maria Palasis, Ph.D., President and Chief Executive Officer of Lyra Therapeutics. “Unfortunately, these measures impact our employees, who helped to build Lyra. I would like to convey my gratitude to our employees for their dedication to helping patients and for their contributions to the company.”

In parallel, the Company plans to evaluate potential strategic options to maximize shareholder value. There can be no assurance that the evaluation of strategic options will result in any transaction, or that any transaction, if pursued, will be completed on attractive terms, if at all. The Company has not set a timetable for the completion of this strategic review and does not intend, assume any obligation, or promise to publicly update or revise any information regarding the status.