Analyst Summary:
Frequency Therapeutics has released its financial results for the fourth quarter and full year ending December 31, 2022, alongside business updates. The company will discontinue its FX-322 program for acquired Sensorineural Hearing Loss (SNHL) following disappointing Phase 2b study results. Instead, the company will focus on developing its remyelination program, which has the potential to stimulate oligodendrocyte precursor cells to myelinate axons for individuals living with multiple sclerosis. The program has produced positive results in adult animal models and is expected to initiate clinical development in the first half of 2024. The company plans to downsize by 55 percent and reduce expenses to generate sufficient cost savings to extend its runway into 2025. CEO David L. Lucchino, who returned to the role following a medical leave, said, "We believe our remyelination program has the potential to produce a restorative effect.”
Forward-looking statements: The press release contains forward-looking statements regarding the company's capital resources and its ability to manage growth, which may differ materially from actual results due to various factors. Although the company may update its statements in the future, it has no obligation to do so.