Epix to lay off 50% of staff
As a direct result of the US Food and Drug Adminstration's (FDA) second approvable letter regarding Vasovist, Epix Pharmaceuticals has announced plans to cut around 50% of its workforce in January 2006.
As a direct result of the US Food and Drug Adminstration's (FDA) second approvable letter regarding Vasovist, Epix Pharmaceuticals has announced plans to cut around 50% of its workforce in January 2006.
The notice from the FDA, received on 22 November 2005, indicated that at least one further clinical trial and a re-read of images obtained in some previous Phase III clinical trials would be required before approval could be granted.
The company, headquartered in Cambridge, Masschussetts, US, says that the reductions will affect its r&d and 'general and administrative areas' and see its number of employees fall from 93 to approximately 48. Until it has meet with the FDA in January 2006 to discuss future clinical trials for Vasovist it said it is unable to comment on 2006 spending, although it does expect the staff cuts to reduce projected cash burn in 2006 by approximately 30%, or $7m, (2005 cash burn is expected to be approximately $25m), excluding non-recurring cash payments associated with the reduction. It will also take a fourth-quarter charge of around $1.2m as a result of the cuts.
A blood-pool contrast agent for use in magnetic resonance imaging (MRI), Vasovist is the company's lead product. It was approved by the European Commission for marketing in the 25 member countries of the European Union in October 2005, and the company is expecting it to be launched in Europe in the first quarter of 2006.
Michael Astrue, interim ceo, said that the company regretted both the loss of the staff and the resultant suspension of many of its early-stage research programmes. He said the need to take such steps had arisen 'in order to bring our lead programmes forward as quickly as we can'.