Flex Pharma To Close FLX-787 Phase 2 Trials; To Assess Strategic Alternatives

(RTTNews) - Flex Pharma, Inc. (FLKS) announced that the company is ending its ongoing Phase 2 clinical trial investigations of FLX-787 in amyotrophic lateral sclerosis and Charcot-Marie-Tooth due to oral tolerability concerns observed in both studies, in a subset of patients being treated.

Flex Pharma announced the company will restructure its organization to reduce costs, including reducing its workforce by approximately 60 percent. The company's Board and its management are in alignment that the company's best path forward to preserve stockholder value is to focus its resources on assessing strategic alternatives, including the potential sale or merger of the company. The Board has established a Strategic Committee that will work with management to oversee the process.

The company said it will continue to operate with a reduced internal team that will focus efforts on assessing the potential of FLX-787 in dysphagia and operating the HOTSHOT consumer business while the strategic review is ongoing.