IRVINE, Calif. - AEON Biopharma, Inc. (NYSE: AEON), a clinical-stage biopharmaceutical company, has declared a strategic reorganization involving significant cost reductions and workforce layoffs to extend its financial runway into Q4 2024. The company's recent actions include a 55% reduction in its workforce and the termination of Peter Reynolds, the chief financial officer.
The changes, effective as of May 17, 2024, also saw AEON's president and CEO, Marc Forth, assuming the role of principal financial officer, with Jennifer Sy, the corporate controller, becoming the principal accounting officer. These moves are part of a broader initiative to decrease operating costs, with substantial completion expected by June 2024.
AEON's ABP-450, a proprietary botulinum toxin complex, is at the center of the company's late-stage clinical pipeline. However, the Phase 2 study of ABP-450 for the prevention of chronic migraine was discontinued after failing to meet primary or secondary endpoints. The company also ceased enrollment and dosing in its migraine open label extension study but will continue to monitor patients for safety for 12 weeks following their last treatment.
Forth expressed gratitude for Reynolds's contributions to AEON, particularly through milestones such as the business combination that led to the company's public listing. He also noted that the cost reduction measures are aimed at preserving cash and maintaining corporate activities while the company seeks additional capital. Once secured, AEON plans to announce a revised clinical development strategy for its ABP-450 programs.
AEON holds exclusive development and distribution rights for therapeutic indications of ABP-450 in various international territories, including the United States, Canada, the European Union, the United Kingdom, and others. The product, manufactured by Daewoong, is approved and marketed for cosmetic indications as Jeuveau by Evolus (NASDAQ:EOLS).
The information in this article is based on a press release statement from AEON Biopharma. The company has cautioned that forward-looking statements in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
Amidst the strategic reorganization and operational shifts at AEON Biopharma, Inc., recent market data and analytics provide a deeper understanding of the company's financial health and stock performance. AEON's market capitalization has adjusted to 53.52 million USD, reflecting its current valuation in the market. Additionally, the company's stock has experienced a sharp decline, with a price total return of -86.71% over the last year, underscoring the challenges it faces.
An InvestingPro Tip highlights that AEON's stock is currently in oversold territory according to the Relative Strength Index (RSI), suggesting that the stock may be undervalued or due for a rebound after the recent sell-offs. Moreover, the stock's high price volatility is emphasized as an important consideration for investors, indicating that AEON's share price can experience significant fluctuations over short periods.
Financial metrics further reveal that AEON's operating income, adjusted for the last twelve months as of Q1 2024, stands at a loss of -50.17 million USD. This figure, along with the expectation of net income to drop this year, aligns with the company's urgent cost reduction initiatives and the discontinuation of certain clinical studies.
For investors seeking additional insights and metrics on AEON Biopharma, InvestingPro offers a comprehensive list of tips, with 13 more tips available at https://www.investing.com/pro/AEON. Those interested in a deeper analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to valuable investment analytics and data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.