Chiasma To Cut One-third Of Its Workforce As Part Of Restructuring

Chiasma Inc. said it would cut about one-third of its workforce, effective immediately, as part of restructuring aimed at focusing the company's resources on the development of its treatment for acromegaly, Mycapssa. The company expects to record one-time charges of $1.4 million to $1.6 million in the second quarter for severance and related costs. Recent regulatory filings showed that Chiasma had 65 employees, according to FactSet. The restructuring follows Chiasma's participation in a meeting with the U.S. Food and Drug Administration regarding its new drug application for Mycapssa. The company had received a complete response letter in April, in which the FDA said the NDA had failed to provide enough evidence of efficacy to warrant approval. The stock, which slumped 2.9% in premarket trade, has plunged 86% year to date through Monday, while the S&P 500 has gained 1.7%.