Chief executive of Critical Therapeutics resigns
Asthma drug maker Critical Therapeutics Inc. of Lexington said today that its chief executive, Paul D. Rubin, has stepped down as part of a broader management shake-up.
The company said Rubin resigned effective immediately to pursue other opportunities.
Robert Zeiger, 62, who has served as independent lead director for the company's board of directors since February 2005, was named executive chairman.
Elsewhere, Frank E. Thomas was appointed president and named to the board. Thomas, 36, will have operating responsibility for all areas of the company. He previously served as chief financial officer, senior vice president of finance and treasurer.
Jeffrey Young, 33, replaces Thomas as vice president of finance and treasurer.
Critical Therapeutics also said it expects to cut costs by at least $15 million in 2006, from previous guidance of $15 million to $20 million. It expects liquidity to improve to between $51 million and $53 million by the close of the second quarter. Net cash expenditures in the second quarter should be lower than the $13 million to $16 million range previously provided.
The company is in the first year of a two-year cost restructuring plan. It posted a loss of $16.7 million, or 49 cents per share, in the first quarter and a loss of $47.1 million, or $1.61 per share, in 2005.
Zeiger said that together with recent cost-cutting measures, the changes will help the company focus on the upcoming launch of the controlled-release formulation of its zileuton, or Zyflo, asthma treatment, as well as advance other research and development programs. The company expects to submit a new drug application for the controlled release zileuton in August.
Shares of Critical Therapeutics fell 9 cents, or 2.4 percent, on the Nasdaq Stock Market early Monday afternoon. The stock traded at a 52-week high of $9.72 in September 2005. (AP)
