Applied Molecular Transport Announces Corporate Leadership Change and Process to Explore Strategic Alternatives

SOUTH SAN FRANCISCO, Calif., March 27, 2023 (GLOBE NEWSWIRE) -- Applied Molecular Transport Inc. (Nasdaq: AMTI) (AMT), a clinical-stage biopharmaceutical company, today announced that the company’s board of directors approved a workforce reduction of approximately 57% of its employee base and the engagement of MTS Health Partners, L.P. as advisors in a process to explore strategic alternatives for the company. As part of the restructuring, Tahir Mahmood, Ph.D., will leave his post as chief executive officer, but will remain as a board member. Shawn Cross, president and chief operating officer, will now serve as chief executive officer and has been appointed to the board where he will serve as chair.

“We continue to believe our proprietary technology, that enables the design of novel oral biologics, is an important innovation in the field of therapeutics.” said Mr. Cross. “However, after an extensive assessment of our clinical programs and the current business environment, we have made the difficult decision to pause research and development as we close out existing programs and explore ending the AMT-101 Castro trial in Rheumatoid Arthritis at its current enrollment. In parallel, we are in the process of exploring strategic alternatives that may allow for further development of our clinical and earlier-stage programs with internal resources or via partnerships. We are deeply grateful to our go-forward team, recently departed colleagues, and founding scientists, including Tahir, for the innovation and advancement of our proprietary technology platform and dedication to AMT.”

As of February 28, 2023, the company had cash and cash equivalents of approximately $47.4 million and estimates cumulative severance costs associated with the workforce reductions implemented in March 2023 of approximately $4.8 million.

About Applied Molecular Transport Inc.
AMT is a clinical-stage biopharmaceutical company that has developed novel oral biologic product candidates, by leveraging its technology platform to design biologic product candidates in patient-friendly oral dosage forms. AMT’s product candidates are designed to precisely target the relevant pathophysiology of disease. AMT’s proprietary technology platform is incorporated in its product candidates, exploiting existing natural cellular trafficking pathways to drive the active transport of diverse therapeutic modalities across the IE barrier. Active transport is an efficient mechanism that utilizes the cell’s own machinery to transport materials across the IE barrier.