EPIX Pharmaceuticals reports loss, job cuts

EPIX Pharmaceuticals Inc. of Lexington reported a fourth-quarter loss and said it is reducing its workforce by 50 percent, effective immediately.

The workforce reduction resulted in 44 jobs lost company wide, including 33 in Massachusetts, a company spokeswoman said.

In a press release, the company said that it estimates that this reduction in force will result in a decrease to its annual salary and benefits costs of $4.4 million.

"Our key priority is improving the financial health of EPIX," company president and chief executive Elkan Gamzu said in a statement.

The press release added that Gamzu has decided to voluntarily reduce his salary base by 50 percent until further notice.

For the fourth quarter, which ended Dec. 31, the company said it lost $10.4 million, or 25 cents a share, versus a loss of $12.3 million, or 33 cents a share, for the same period a year ago.

Fourth quarter revenues were $3.8 million, compared with $5.9 million from a year ago, the company said.

As of Dec. 31, EPIX said it had cash, cash equivalents, and short-term investments of $24.6 million, compared with $61.1 million on Dec. 31, 2007.

The press release also said: "The company has $100.0 million of convertible debt currently outstanding. The $100.0 million of convertible debt will become due if the company cannot regain compliance with the continued listing requirements of the NASDAQ Global Market. The company has been notified by NASDAQ that it has until May 11, 2009 to regain compliance ..."

To read the company's full press release, please click here.
(By Chris Reidy, Globe staff)