AN2 reduced its headcount by 50% after lead antibiotic fails in Phase II/III trial

AN2 Therapeutics has implemented cost-cutting measures following disappointing Phase II results from its Phase II/III trial of epetraborole, its lead antibiotic. The company halted enrollment in the Phase III part of the trial after interim data suggested the drug's efficacy was lower than anticipated. As a result, AN2's stock fell by over 22.7% in premarket trading on August 9, and has been struggling since a similar decline in February.

To address these setbacks, AN2 plans to reduce its workforce by 50% by year-end, with restructuring costs estimated at $2-3 million. Chief Medical Officer Dr. Paul Eckburg will depart by August 30. These measures are expected to extend the company’s financial runway until 2027.

Epetraborole, a bacterial leucyl-tRNA synthetase inhibitor licensed from Pfizer, was initially being tested for refractory mycobacterium avium complex (MAC) lung disease. Despite meeting its primary endpoint in Phase II, the trial failed to show significant improvement in sputum culture conversion compared to placebo. AN2 will now explore epetraborole in melioidosis and continues to develop AN2-502998 for Chagas disease.