Lyra Therapeutics suspends lead drug development, cuts workforce

Lyra Therapeutics Inc. (NASDAQ: LYRA) announced its board of directors decided to suspend development of LYR-210, the company's lead treatment candidate for chronic rhinosinusitis. The biotech company also implemented a workforce reduction affecting its remaining 28 employees and other cost-cutting measures to preserve capital.

The company retained Chief Executive Officer Maria Palasis and Chief Financial Officer Jason Cavalier as consultants to pursue strategic alternatives. Lyra has engaged SSG Capital Advisors to assist with this effort, according to a company statement.

"In connection with the Company's review of strategic options, which was announced in May 2024, the Board has concluded that it is in the best interests of shareholders to cease Lyra's product development operations," Palasis said.

LYR-210 showed positive results in the ENLIGHTEN 2 Phase 3 trial in June 2025, achieving statistically significant outcomes for primary and key secondary endpoints in treating chronic rhinosinusitis without nasal polyps. The company estimates nearly three million non-polyp chronic rhinosinusitis patients in the U.S. fail medical management annually and would be eligible for LYR-210.

Lyra had established a clinical development plan including an additional Phase 3 trial based on meetings with the Food and Drug Administration to support a new drug application submission for LYR-210.

As of September 30, 2025, Lyra held approximately $22.1 million in cash, cash equivalents and short-term investments. The company expects its cash runway to extend into the third quarter of 2026.

The company provided no assurance that strategic alternatives would result in any transaction or that any transaction would be completed on favorable terms.

You May Also Be Interested In

• Barclays Upgrades 1&1 AG (1U1:GR) to Overweight
• Barclays Upgrades Keurig Dr Pepper (KDP) to Overweight
• Blackberry earnings preview Q1: strong print expected, AI potential in focus