Deep cuts reported at Neurocrine, Valentis

Still reeling from Pfizer's decision to terminate its marketing deal for the sleep drug Indiplon, Neurocrine Biosciences reported that it is cutting 100 employees at its San Diego campus, bringing its work force down to 280 people. Neurocrine earlier reported that it was terminating its 200-member field sales force. Neurocrine says it will end the year with $180 million in cash. The trouble for Neurocrine started with regulatory decisions raising the possible need for more clinical trials on Indiplon.

"In our thirteen year history we have never had to make such difficult decisions, as we have over the past several weeks, which have had such an effect on so many of our employees and their families," said CEO Gary Lyons. "We will maintain our focus and efforts on research and development programs aimed at treating diseases of the central nervous and endocrine systems."

- here's the AP report on Neurocrine Biosciences

PLUS: Following last month's decision to halt development efforts around a new therapy for peripheral arterial disease, Valentis announced today that it was selling some key assets and laying off 60 percent of its staff. The remaining workers will stay on to work on some strategic initiatives, which may include selling the company. Report