AEON Biopharma Reveals Strategic Resource Shift and Cost-Cutting Plan

AEON Biopharma, Inc., a clinical-stage biopharmaceutical company based in Irvine, California, has announced a strategic reprioritization and cost reduction plan to extend its operational cash runway into the fourth quarter of 2024. This decision is part of the company's efforts to evaluate financing options for the advancement of its late-stage clinical pipeline, specifically focusing on the botulinum toxin complex ABP-450, which targets multiple medical conditions.

Marc Forth, AEON's president and CEO, stated that the company has conducted a strategic review of its resources and decided to implement several cost-saving measures to preserve cash while continuing support for corporate activities. These actions are intended to position AEON for future capital acquisition and enable the announcement of a revised clinical development strategy for ABP-450.

As part of its cost preservation strategy, AEON has reduced its workforce by approximately 55%. This reduction includes the termination of Peter Reynolds from his roles as chief financial officer, principal financial officer, and principal accounting officer as of May 17, 2024. Concurrently, Marc Forth has been appointed as the principal financial officer, and Jennifer Sy, the corporate controller, as the principal accounting officer, both effective from the same date. This workforce reduction and other cost-saving measures are expected to be largely completed by June 2024.

AEON has also decided to discontinue the Phase 2 study of ABP-450 for the prevention of chronic migraine after the topline interim analysis did not meet its primary or secondary endpoints. Enrollment and dosing in the company's migraine open-label extension study have also ceased. Patients involved in both studies will continue to be monitored for safety through the 12-week period following their last treatment. The company will continue to analyze interim data from the study.

AEON Biopharma specializes in developing ABP-450 (prabotulinumtoxinA) injections for the treatment of debilitating medical conditions with a focus on the neurosciences market. ABP-450 is the same botulinum toxin complex marketed for cosmetic purposes under the name Jeuveau by Evolus. It is manufactured by Daewoong in compliance with current Good Manufacturing Practice (cGMP) standards approved by the U.S. Food and Drug Administration (FDA), Health Canada, and the European Medicines Agency (EMA). AEON holds exclusive development and distribution rights for therapeutic indications of ABP-450 in the U.S., Canada, the European Union, the United Kingdom, and other international territories.

The company has built a seasoned management team with extensive experience in biopharmaceutical and botulinum toxin development and commercialization. Despite the recent changes and challenges, AEON remains focused on advancing its clinical pipeline and securing the necessary resources to fund future development.

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