Repros Therapeutics runs out of cash
Repros Therapeutics says it does not have enough cash to fund ongoing operations and if it fails to attract further funding in the short term it may have to file for bankruptcy or be liquidated.
Repros Therapeutics says it does not have enough cash to fund ongoing operations and if it fails to attract further funding in the short term it may have to file for bankruptcy or be liquidated.
The Texas, US-based developer of oral small molecule drugs to treat male and female reproductive disorders says it has cut staff salaries by half to reduce expenses.
Repros said it could no longer fund its clinical trials of Androxal, complete all necessary activities relating to the suspension of its clinical trials for Proellex, or pay its accounts, normal overheads or expenses.
As of 14 August, the company had US$2.7m (Euro 1.9m) in cash, and the amount of accounts payable and accrued expenses were "significantly higher" than US$7.5m (â"šÂ¬5.3m). Net loss for the six months to 30 June was US$15.6m (â"šÂ¬11m), compared with US$12.8m (â"šÂ¬9m) in the same period in 2008. Research and development costs rose 16% to US$13.5m (â"šÂ¬9.5m) for the six-month period, mainly owing to an increase in clinical activities associated with Proellex.
The US Food and Drug Administration placed Proellex on hold for safety reasons, after elevated liver enzymes were discovered in a number of patients enrolled in the clinical trials.
Repros also faces a class action lawsuit from shareholders alleging misleading statements on the trial results of Proellex. The company has engaged the services of a law firm to assist it in defending this action.