Pharmacopeia Advances Strategic Plan to Focus Resources on Development and Later-Stage Discovery Programs
PRINCETON, N.J., May 30, 2008 /PRNewswire-FirstCall/ -- Pharmacopeia, an innovator in the discovery and development of novel small molecule therapeutics, announced today that it is implementing the next step in its ongoing effort to focus its resources on the company's clinical and later-stage discovery programs. This effort includes an immediate workforce reduction of approximately 15 percent through attrition and termination of positions as well as a decrease in other expenses through improved operational efficiencies and increased financial discipline. The company's annual operating expenditures are expected to decrease by at least $10 million in 2009.
"We believe that, with the recent announcement of our positive Phase 2a results for PS433540 (DARA), it is the appropriate time to continue executing our plan to allocate a greater share of our resources towards our later-stage programs," said Joseph A. Mollica, Ph.D., Chairman of the Board of Directors and Interim President and Chief Executive Officer of Pharmacopeia. "We are grateful for the contributions of the highly talented individuals whose positions are impacted by these decisions and wish them success in their future endeavors."
"In order to maximize shareholder value it is essential that we focus our efforts on the programs that can provide the greatest return. In addition to PS433540, these programs include: PS178990, our Selective Androgen Receptor Modulator (SARM) which we believe will progress into Phase 2 testing in the first half of 2009; PS031291, our oral CCR1 development candidate for which we intend to initiate clinical development for the treatment of rheumatoid arthritis in early 2009; and our JAK3 program for the topical treatment of psoriasis which we expect to enter preclinical development in 2009. Discovery research remains a core strength of Pharmacopeia and will be increasingly focused on the discovery and advancement of clinical candidates that we can independently develop into valuable assets that directly benefit our shareholders," continued Dr. Mollica.
As the company continues to improve its operational flexibility and strengthen its balance sheet, it has a number of significant opportunities to generate cash including a partnership for PS433540, the continued success of its discovery efforts on behalf of partners, future development milestones and potential royalties for the several clinical candidates discovered by Pharmacopeia that are being advanced by partners such as Schering-Plough and Bristol-Myers Squibb and, when appropriate, accessing the capital markets.
In the second quarter of 2008, Pharmacopeia expects to record a charge of approximately $800,000 in connection with the severance provided to employees directly affected by the reduction in staffing.
Pharmacopeia is a clinical development stage biopharmaceutical company dedicated to discovering and developing novel small molecule therapeutics to address significant medical needs. The company has a broad portfolio of clinical and preclinical candidates under development internally or by partners including eight clinical compounds in Phase 2 or Phase 1 development addressing multiple indications including hypertension, diabetic nephropathy, muscle wasting, inflammation and respiratory disease. The company is leveraging its fully integrated drug discovery platform to sustain the growth of its development pipeline. Pharmacopeia has established strategic alliances with major pharmaceutical and biotechnology companies, including Bristol-Myers Squibb, Celgene, Cephalon, GlaxoSmithKline, Schering-Plough, and Wyeth Pharmaceuticals.
Posted: May 2008