Auditors question Epix's ability to survive

Ernst & Young inserted a 'going concern' warning into Lexington, MA-based Epix Pharmaceuticals' recently released annual report, raising doubts about the company's ability to survive the ongoing credit crunch.

Just last December Epix laid off close to a quarter of its staff and last month Nasdaq gave Epix a May 11 deadline to come into compliance with its listing rules. The developer reported a $36.6 million loss for last year on revenue of $28.6 million.

As Mass High Tech notes, though, Epix has had its recent successes as well. Regulators at the FDA approved the company's contrast imaging agent Vasovist Injection, its lead product. And Epix earned a $500,000 milestone from the Cystic Fibrosis Foundation for its work on new therapies that target the Cystic Fibrosis Transmembrane conductance Regulator ion channel. Epix has now reaped a total of $5 million from the collaboration.

Epix's pipeline includes experimental therapies for the central nervous system and lung conditions. Other collaborations at the company include pacts with GlaxoSmithKline and Amgen. Earlier this month Epix named Elkan Gamzu as its permanent CEO.

- check out Epix's release
- read the report from Mass High Tech

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