Exton, PA-based Adolor is cutting 30 jobs, or about a third of its workforce, as it attempts to reduce cash burn levels. The developer had 114 employees at the end of 2009.
In May 2008, the FDA approved Entereg for postoperative ileus, a common condition following surgery that can extend a patient's hospital stay. It was the first approval for Adolor, which was partnered with GlaxoSmithKline on the treatment. Sales of the drug have been slow since it launched in 2009. Second quarter sales of Entereg totaled $6.3 million, compared with $2.4 million in the second quarter of 2009. However, first half 2010 product sales are tracking slightly lower than projected, contributing to the job cuts.
Adolor when through a previous round of layoffs in 2009, when it cut 45 jobs and focused on later-stage development programs. This round of cuts will allow Adolor to continue operating until 2010. The company currently has $62.3 million in the bank. "Our restructuring provides Adolor with a fiscally responsible plan to fund its operations for more than two years without any near-term need to raise capital," says CEO Michael Dougherty. "We will remain focused on our two primary business objectives: the continued growth of the ENTEREG brand and the advancement of our opioid bowel dysfunction clinical development program through proof-of-concept studies in 2011."
- take a look Adolor's release
- read the AP piece for more