Left reeling from the FDA's rejection of its imaging drug in December, Acusphere is chopping 40 jobs--roughly two thirds of its remaining staff--in a restructuring. Acusphere is also closing its Watertown, MA headquarters, consolidating in its manufacturing facility in Tewksbury and filed to suspend its reporting requirements to the SEC.
Included in the layoffs is CFO Lawrence Gyenes. The developer says it has no plans to replace him. After the layoffs, the company will be left with 20 workers, down from 118 a year ago. According to the Boston Business Journal, Acusphere's cash position has been dwingling fast. The company reported $4.1 million in cash at the end of its third quarter.
"The reductions cut across all functional areas including manufacturing, quality systems, drug development, regulatory, finance and administration," the company said in a statement. "These reductions are intended to extend the company's cash position to accommodate continuing discussions with FDA."
"These decisions are extremely difficult but both appropriate and necessary given the current financing environment for life sciences companies, our continued belief that Imagify will be approved and our improved prospects for financing on more favorable terms after reaching agreement with FDA on the regulatory path forward for Imagify," said CEO Sherri C. Oberg.
- see Acusphere's release
- read the report from Mass High Tech
- see the story from the Boston Business Journal
ALSO: North Carolina-based Inspire Pharma, meanwhile, says it will lay off 20 and focus on late-stage programs. Report