Palatin cuts half its workforce, discovery R&D
Palatin Technologies is once again slashing its staff--this time to the tune of 50 percent of its workforce. It's the third time the Cranbury, NJ-based company has implemented layoffs since 2007, when safety issues caused partner King Pharmaceuticals to bail on the company's female sexual dysfunction drug. By the end of the year, Palatin's ranks will be reduced to 20 workers, saving the company $1.4 million per quarter in operating expenses.
Palatin is restructuring to focus resources on clinical trials of bremelanotide for male and female sexual dysfunction and PL-3994 for asthma. All research activities relating to the discovery of new compounds have been halted. Additionally, Palatin says it's implementing a one-for-ten reverse stock split of its common stock.
"After critically reviewing our current research and development operations and plans, as well as other business activities, we made the decision to reposition Palatin. We believe prioritizing our clinical programs and focusing on advancing our clinical drug candidates can generate the most value for our stockholders," says Palatin CEO Carl Spana.
- here's Palatin's release on the cuts