In August 2023, the Company implemented a strategic corporate reorganization and reprioritization of its pipeline (the “2023 Restructuring”). The 2023 Restructuring included a reduction of the Company’s workforce by approximately 40%, designed to right-size the organization as the Company worked to achieve sustained growth and support the commercialization of ZURZUVAE for the treatment of women with PPD. During the year ended December 31, 2023, the

Company recorded $33.4 million of expense related to the 2023 Restructuring, primarily for one-time termination benefits to the affected employees, primarily for cash payments of severance, healthcare benefits and outplacement assistance.

As of December 31, 2024, the Company has paid substantially all of the accrued 2023 Restructuring charges and during the year ended December 31, 2024, the Company recorded a $0.5 million reversal of related expense. Total restructuring charges incurred through December 31, 2024 are $32.9 million, which is the total expected amount to be incurred.

In October 2024, the Company implemented a plan to reorganize its business operations (the “2024 Restructuring”), including to focus investment on the ongoing launch of ZURZUVAE for the treatment of women with PPD and its prioritized pipeline development efforts. As part of the 2024 Restructuring, the Company implemented a reduction of approximately 33% of the Company’s total workforce and approximately 55% of the Company’s research and development workforce. During the year ended December 31, 2024, the Company recorded $22.3 million of expense for the 2024 Restructuring, primarily for one-time termination benefits to the affected employees, primarily consisting of cash payments of severance, healthcare benefits and outplacement assistance.

The Company expects that substantially all of the accrued 2024 Restructuring charges as of December 31, 2024 will be paid in cash by June 30, 2025. The Company expects to incur a total of $23.6 million of expense related to the 2024 Restructuring, including $1.3 million of expense which will be recorded in future periods, primarily consisting of one-time termination benefits.

The following table summarizes activity related to the restructuring accrual inclusive of both the 2023 and 2024 Restructuring:


	Year Ended December 31,
	2024			2023
	(in thousands)
Balance as of January 1	$	10,589		$	—
Restructuring expenses incurred, net		21,854			33,386
Cash paid		(16,939	)		(19,163	)
Non-cash activity		(197	)		(3,634	)
Balance as of December 31	$	15,307		$	10,589