Several weeks ago Discovery Laboratories came to terms with the fact that its lead drug, Surfaxin, was unlikely to gain FDA approval anytime soon. The agency rejected the drug in April and, following an end-of-review meeting, Discovery said that the FDA's new standards for the respiratory drug could not be met with its current data. Instead the company chose to focus two pipeline programs--Surfaxin LS and Aerosurf.
Now it looks like Discovery will need more funding to support those two programs. While reporting its second quarter financial results, the company said it's examining its "strategic and financial alternatives" for developing the drugs, and that it would prefer to get the funding it needs through a strategic alliance. But until that happens, "the company has taken actions to conserve its financial resources by predominantly curtailing investments in its pipeline programs," according to a statement. Discovery estimates its cash flow for the second half of 2009 will be approximately $13 million if it doesn't secure a deal.
Discovery posted a second-quarter loss of $7.9 million, or 7 cents a share, compared with a net loss of $10.2 million, or 11 cents a share, in the year-ago quarter.
- take a look at Discovery's announcement
- here's the Reuters report