Lykos Cuts 75% of Staff Following FDA Rejection

With a dramatic reorganisation, Lykos Therapeutics is finishing off a terrible week. Following an FDA denial and the withdrawal of three research articles on the biotech’s MDMA therapy due to protocol breaches at a clinical trial site, as a result the company is cutting off nearly 75% of its workers.

The FDA’s rejection of Lykos’ PTSD treatment using MDMA-assisted therapy just six days earlier marked the beginning of the business’s collapse. The agency’s advisory group had already voted opposing approval, so the decision was not shocking.

Two days later, three research publications reporting the findings of Lykos’ phase 2 studies evaluating MDMA were withdrawn from the journal Psychopharmacology. The research supporting the FDA clearance request did not correspond with the findings provided in the withdrawn papers.

Not willing to give up on FDA clearance, Lykos has chosen to focus on bringing MDMA throughout the regulatory finish line by laying off 75% of its personnel, or around 75 individuals. The surviving staff members will concentrate on continuous clinical development, medical affairs, and FDA interaction.