Lykos lays off 100 employees after MDMA drug setback; founder leaves board, ETHRWorld

<p>Hough was instrumental in the development of J&J's Spravato nasal spray, which is used in combination with an oral medication to treat depression</p>
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By Christy Santhosh

Lykos Therapeutics will lay off 75 percent of its workforce, or about 100 employees, and founder Rick Doblin will step down from the board, the company said Thursday, days after the U.S. Food and Drug Administration (FDA) rejected approval for the company's MDMA-based PTSD drug.

Lykos, formerly known as MAPS Public Benefit Corp, said it will hire David Hough, former vice president of research and development at Johnson & Johnson, to lead and oversee clinical development of the MDMA capsules.

Hough led the development of J&J's Spravato nasal spray, which is used in combination with an oral medication to treat depression.

He joins Lykos just days after the U.S. Food and Drug Administration rejected approval of the company's midomafetamine (MDMA)-based treatment for post-traumatic stress disorder, citing insufficient data.

MDMA, commonly known as ecstasy or molly, has long been viewed by proponents as a potential treatment for mental disorders.

The agency's decision was in line with the recommendations of its advisers, who had pointed out problems in the study design and a lack of documentation regarding participants' misuse of the experimental drug.

The company said it would ask the FDA to review its decision and reapply for approval of the MDMA capsules.

Jeff George, Lykos' chief executive officer, said Hough is “the right person” to lead the important work toward resubmission to the FDA.

Doblin said he would continue to advocate for global access to MDMA, adding that his resignation from the company's board would allow him to speak freely.

“This change allows Rick Doblin to focus on the broader work of MAPS and Lykos to continue to focus on clinical and regulatory work,” Lykos told Reuters.

The company said the remaining 25% of its workforce would focus on developing the MDMA-based capsules and negotiating with the FDA on the next steps in the resubmission process. (Reporting by Christy Santhosh and Sriparna Roy in Bengaluru; Editing by Pooja Desai)