Lyra Therapeutics, Inc. 8-K

What Happened
Lyra Therapeutics, Inc. (LYRA) announced that on January 9, 2026 its Board approved a plan to suspend further development of its lead product candidate LYR‑210 and implement a cost reduction plan, including a workforce reduction effective January 12, 2026. The company said the action is intended to preserve capital while it evaluates and explores strategic alternatives and has engaged SSG Capital Advisors, LLC to assist in that process. Lyra noted prior positive ENLIGHTEN 2 Phase 3 data (June 2025) but decided to cease product development operations as part of the review.

Key Details

• Board approval date: January 9, 2026; workforce reduction effective: January 12, 2026.
• Expected charges: primarily employee severance, termination benefits, benefit continuation and related costs; company cannot yet estimate total amount or range and will amend the 8‑K when determined.
• Strategic process: engaged SSG Capital Advisors to explore alternatives; no timetable and no assurance a transaction will occur.
• Cash position: approximately $22.1 million in cash, cash equivalents and short‑term investments as of September 30, 2025 (prior to the reduction in force); current cash runway expected to extend into Q3 2026.

Why It Matters
This is a material change to Lyra’s clinical and operating strategy: suspending LYR‑210 development halts advancement of its lead asset despite positive Phase 3 results, and the large workforce reduction signals a significant downsize to preserve cash. Investors should note the company expects near‑term restructuring charges (amounts not yet estimated) and a limited cash runway into the third quarter of 2026, increasing the importance of any strategic alternatives or financing decisions.