Epix Pharmaceuticals Inc. (Nasdaq:EPIX) has announced a 23% cut in its workforce - 27 employees - and is narrowing its R&D efforts, effective immediately. The measures come after the resignation of CEO Michael Kaufman and the failure to sell its Vavosit product to Bayer AG (DAX: BAY).
Epix said that it will devote its resources to its lead clinical programs, PRX-03140 being developed for the treatment of Alzheimer’s disease, and PRX-08066 for the treatment of chronic obstructive pulmonary disease and moderate-to-severe pulmonary hypertension. It will also continue joint preclinical programs with GlaxoSmithKline plc (NYSE; LSE: GSK) and Cystic Fibrosis Foundation Therapeutics.
Epix was created through a merger with Israeli drug development company Predix in 2006. The company posted a net loss of $2.3 million on $17 million revenue for the second quarter of 2008. It predicts that it will lose $45-50 million on $25-30 million for the year as a whole. The company estimates that the layoffs will reduce its annual salary cost by $3 million. The company will pay $300,000 in severance pay, which will be recorded in the financial report for the fourth quarter.
Epix rose 5.3% to $0.40 on Friday, giving a market cap of $16.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2008
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