Looking to cut overhead and focus on its lead drug program, Connecticut-based Penwest Pharmaceuticals is reducing its staff from 60 to 49. The company says the layoffs will build on the decreases in spending on general and administrative, as well as research and development, expenses over the past year.
In addition to job cuts, Penwest will attempt to boost sales of its pain drug Opana ER, which it markets with Endo Pharmaceuticals. It will be looking to for a partner to market the treatment outside the U.S. Additionally, Penwest will look to monetize it's drug delivery drug and drug formulation business by executing at least two drug delivery deals this year.
The company will focus on development of A0001 in 2009, with the goal of completing a multiple ascending dose safety study by the second quarter of 2009, and completing a Phase II proof-of- concept study in patients by the end of 2009. The drug is being tested as a treatment for mitochondrial diseases.
"We expect the company to become cash flow positive and achieve quarterly profitability in the fourth quarter of 2009,' said Penwest CEO Jennifer Good in a statement. "However, we also understand the challenging environment in which we are currently operating, and the need to bring down the company's costs to be responsive to that environment and our level of activity in 2009.''
- here's Penwest's release