Tarrytown, NY-based EpiCept has joined the growing ranks of biotech companies that have run smack into the brick wall of an economic downturn. EpiCept says it will lay off two thirds of its staff and end its drug discovery work as it hunkers down to preserve cash. EpiCept says it now plans to focus on registering Ceplene in the U.S. and on clinical development programs. Ceplene--which was recently approved in Europe--is a cytokine immunomodulator for the remission maintenance of AML patients.
The reorganization is expected to reduce its annual expenses by about $5.5 million. The biotech says it will incur a one-time charge during the first quarter of 2009 of approximately $2.5 million in connection with the closing of a San Diego facility. EpiCept plans to offer its ASAP drug discovery technology for sale or partnering to an interested party.
"This is a difficult decision and is largely attributable to the current financing environment, but in taking these actions we will help ensure that EpiCept has the resources to execute our development strategies for our most advanced opportunities," stated Jack Talley, the CEO of EpiCept. "We are currently focused on partnering Ceplene in Europe and pursuing regulatory approval of Ceplene in the U.S. and Canada. In addition, we look forward to advancing our other drug candidates through key clinical trials, such as our Phase Ib development program for EPC 2407 in patients with advanced solid tumors and lymphomas."
- check out the EpiCept release