Determined to cut its annual cash burn rate by $12 million a year, Adolor has opted to axe 45 jobs--28 percent of its workforce--as the developer shifts its focus away from early-stage clinical products and concentrates on late-stage prospects and its bowel dysfunction drug launched last year.
"Given the broader economic conditions in our industry, it is necessary for us to preserve our resources for the commercialization of Entereg and the development of our pipeline," said Chief Executive Michael R. Dougherty. GlaxoSmithKline co-promotes Entereg. The company says it will end the year with about $85 million in cash and investments.
But the news failed to cheer investors, who drove the company's stock down 10 percent last night. Adolor's stock has shed 60 percent of its value over the past year.
- read the report from Dow Jones