Epix Pharmaceuticals discloses job cuts
Epix Pharmaceuticals Inc., a Lexington life sciences company, said today that it is reducing its workforce by 23 percent, effective immediately, as it narrows its focus on its most promising drug candidates.
In an e-mail, a company spokeswoman wrote that Epix eliminated 30 positions, 19 in Lexington and 11 in Israel.
Epix said in a press release, "The company plans to devote its resources to its lead clinical programs, PRX-03140 being developed for the treatment of Alzheimer's disease and PRX-08066 being developed for the treatment of patients with chronic obstructive pulmonary disease and moderate-to-severe pulmonary hypertension, as well as its partnered preclinical programs with GlaxoSmithKline and Cystic Fibrosis Foundation Therapeutics."
Epix said it estimates that the job cuts will result in annual savings of $3 million, and it added that it expects to realize additional cost savings as a result of its narrowed research focus. Estimated charges of about $300,000 will be recorded in the fourth quarter of 2008 in connection with one-time employee termination benefits, including severance and other benefits, the company said.
Epix chief financial officer Kim C. Drapkin said in a statement: "While this type of action is always very difficult, we believe it is in the best interest of Epix stakeholders that we closely align our current resources with our strongest near-term opportunities for success. Given the tough market conditions, the board of directors and the management team agreed that our development efforts should be focused on our lead clinical stage opportunities as well as our preclinical programs that are largely supported by our partners. We believe this strategy coupled with our potential success in monetizing Vasovist, our novel blood pool magnetic resonance angiography agent, will strengthen the foundation for future success at Epix."
(By Chris Reidy, Globe staff)