Dyax Announces Intent to Close Belgium Research Facility
CAMBRIDGE, Mass. -- DyaxÂ announced today that the Board of Directors of its Belgian subsidiary, Dyax SA, has initiated discussions with its 24 employees as it considers a possible closure of the Liege-based research facility. The closure option would allow for reduction in operating expenses and corresponds with Dyaxâ€™s strategic plan to direct its resources toward the commercialization of DX-88 in hereditary angioedema. Additionally, the closure option would help optimize Dyaxâ€™s research and development capabilities by consolidating its discovery and preclinical programs at its headquarters in Cambridge, MA. In accordance with Belgian law, no final decision is expected until some time in June 2008.
Expenses related to the Belgium research facility have risen steadily as a result of the depreciating U.S. dollar, negatively effecting operating costs. If completed, Dyax expects the closure would contribute approximately $7.0 million in annual savings after 2008 and result in a charge of approximately $5.3 million in the remaining quarters of 2008.
â€œThis strategic decision is difficult but necessary for the ongoing growth objectives of Dyax. We are in a crucial period of our late-stage DX-88 clinical program, which requires substantial resources and dedication. The consolidation of our research facilities would contribute to the strategy of reducing our operating costs and increasing our productivity and efficiency,â€ commented Henry E. Blair, Chairman, President and Chief Executive Officer. â€œThe contributions made by the Liege research team are deeply appreciated.â€
Dyax is focused on advancing novel biotherapeutics for unmet medical needs, with an emphasis on oncology and inflammatory indications. Dyax utilizes its proprietary drug discovery technology to identify antibody, small protein and peptide compounds for clinical development.
Dyaxâ€™s lead product candidate is DX-88, a recombinant small protein that is currently in clinical trials for its therapeutic potential in two separate indications. Dyax has completed three Phase 2 trials and a Phase 3 trial of DX-88 for the treatment of hereditary angioedema (HAE). A second Phase 3 trial, known as EDEMA4, is currently being conducted under a Special Protocol Assessment (SPA). DX-88 has orphan drug designation in the U.S. and E.U., as well as Fast Track designation in the U.S. for the treatment of acute attacks of HAE.
Additionally, Dyax has completed a Phase 1/2 trial of DX-88 for the prevention of blood loss during on-pump coronary artery bypass graft (CABG) procedures. A Phase 2 trial, known as Kalahari 1, for further development of DX-88 in on-pump cardiothoracic surgery (CTS), including CABG and heart valve replacement or repair procedures, is ongoing in a recent partnership with Cubist Pharmaceuticals.
Dyax identified DX-88 and other compounds in its pipeline using its patented phage display technology, which rapidly selects compounds that bind with high affinity and specificity to therapeutic targets. Dyax leverages this technology broadly with over 70 revenue generating licenses and collaborations for therapeutic discovery, as well as in non-core areas such as affinity separations, diagnostic imaging, and research reagents.
Dyax is headquartered in Cambridge, Massachusetts. For online information about Dyax Corp., please visit www.dyax.com.
This press release contains forward-looking statements, including statements regarding the consideration of the possible closure of Dyaxâ€™s Liege-based research facility. Statements that are not historical facts are based on Dyaxâ€™s current expectations, beliefs, assumptions and estimates. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements because of uncertainties associated with various activities and aspects of Dyaxâ€™s business, including risks and uncertainties associated with the following: Dyaxâ€™s changing requirements and costs associated with planned research and development activities, Dyaxâ€™s dependence on key management and key suppliers, the timing and results of clinical trials, regulatory review and approval of DX-88 for HAE, intense competition, including in the areas of DX-88â€™s planned indications, Dyaxâ€™s dependence on collaborators for development, clinical trials, manufacturing, sales and distribution of DX-88 and other product candidates, the impact of future alliances or transactions involving Dyax or others, the uncertainty of patent and intellectual property protection, and other risk factors described or referred to in Dyaxâ€™s most recent Annual Report on Form 10-K and its other subsequent periodic reports filed with the Securities and Exchange Commission. Dyax cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Dyax undertakes no obligation to update or revise these statements, except as may be required by law.
Dyax and the Dyax logo are registered trademarks of Dyax Corp. EDEMA4 is a registered service mark and Kalahari 1 is a service mark of Dyax Corp.
Dyax Corp. Ivana Magovcevic-Liebisch, 617-250-5759 Executive Vice President of Administration and General Counsel [email protected] or Nicole Jones, 617-250-5744 Director, Investor Relations [email protected]