Citing "current economic and industry conditions," San Diego-based Hollis-Eden Pharmaceuticals is bidding farewell to 20 employees (33 percent of its staff), freezing salaries and suspending bonuses for all employees, including officers. The reductions are part of a cost-cutting plan that the company says will allow it to continue operations for two years without having to hunt for additional funds, which have been scarce as of late. In the meantime, Hollis-Eden will use its remaining resources to advance the Triolex (HE3286) and Apoptone (HE3235) clinical development programs.
"This environment necessitates dramatic changes in order to move clinical programs forward," said Chairman and CEO Richard Hollis in a statement. "Investment bankers, analysts and money managers indicate clearly that extending cash runways out to 24 months or longer, and advancing drug candidates to critical value-driving inflection points, is key to weathering this economic storm. Among the hundreds of publicly traded biotechnology companies today, many of which have between six and twelve months of cash, Hollis-Eden is one of the fortunate few that has sufficient capital to significantly extend its runway by restructuring its organization."
- see Hollis-Eden's release