Scynexis, a drug firm whose most promising product is an anti-fungal treatment, is selling its service business and relocating to New Jersey.

The company’s founder also is stepping down as president.

Scynexis (Nasdaq: SCYX) went public last year but has struggled. The firm replaced its CEO earlier this year.

The sale of the contract research and development business was announced early Wednesday. Financial terms weren’t disclosed.

The full announcement follows:

RESEARCH TRIANGLE PARK, N.C., July 23, 2015 – Drug
discovery and development company SCYNEXIS, Inc. (Nasdaq:SCYX) today announced that it has completed an asset purchase agreement with Avista Pharma Solutions for the sale of its contract research and development services business. The sale of the contract services business includes a novel screening platform and technology utilized by leading animal health companies, and GMP API, process chemistry and analytical service offerings to customers on a fee-for-service basis.

In connection with the sale of the contract research and development services business, SCYNEXIS will relocate to Jersey City, New Jersey, effective August 1, 2015. Additionally, SCYNEXIS founder and President Yves J. Ribeill, Ph.D., has stepped down from his position as the Company’s President. Dr. Ribeill will continue to serve on the SCYNEXIS
Board of Directors.

“SCY-078 is a novel antifungal born out of the SCYNEXIS contract research and development services business’ drug discovery capabilities and shows great potential as a treatment for invasive and treatment-resistant fungal infections. This transaction with Avista Pharma will allow us to divest the services business in order to strategically focus our resources on the clinical development of this promising compound and further advance the field of antifungals,” said
Marco Taglietti, M.D., SCYNEXIS’ Chief Executive Officer. “Even beyond the discovery of SCY-078, the services business has been a valuable part of SCYNEXIS, and on behalf of the entire company and the Board of Directors, I thank both Yves and the dedicated employees who helped to build the business and wish them well in their transition.”

“The acquisition further expands our capabilities in cGMP drug development and manufacturing services and establishes an immediate presence with global clients in the animal health marketplace,” said Patrick Walsh, CEO of Avista Pharma Solutions. “This marks our second investment in less than 60 days and adds immediate technical capabilities, a world class scientific team, and a 90,000 square foot facility to further expand our operations.”