Two years after a trial failure forced the start of a restructuring program, tiny Genaera announced this morning that it is cutting again. The company announced plans to reduce its headcount by 80 percent as of May 1, though no actual number was included in the release.
"We believe it is prudent to take all appropriate measures to conserve existing capital while weighing our options going forward," commented CEO Jack Armstrong.
On March 9 the developer's auditors delivered a going-concern warning. The developer has been advancing trodusquemine (MSI-1436), for type 2 diabetes and obesity currently in Phase 1 and has an out-licensed partnership with MedImmun in Phase 2 clinical testing in asthma.
Isolagen, meanwhile, is signaling for a deal as it runs out of cash. The company's CEO told the Philadelphia Business Journal that it has about a week's worth of operating cash left. Isolagen is looking to sell assets and notes that bankruptcy is an option. "We're pursuing all alternatives," said CEO Declan Daly. "We remain hopeful, but it's tough out there for biotechs to raise money." Isolagen recently filed a BLA for Isolagen Therapy, a wrinkle treatment that could also have applications for acne, burns and stretch marks.
- read Genaera's release
- check out the story on Isolagen in the Philadelphia Business Journal