Isotechnika orders layoffs, pursues 'alternatives'

Canada's Isotechnika has already announced that it's pursuing partnerships, merger deals, asset sales and other "strategic alternatives." And in a release this morning, the developer is adding layoffs and other unspecified budget-cutting moves.

"Since the timeline for completion of any strategic alternative is unknown, the company must reduce its cash burn rate," says Isotechnika in a release. Just how many people it plans to terminate or lay off temporarily was not spelled out in the release.

Isotechnika says it will focus on its Phase III psoriasis trial and other studies currently underway with voclosporin, "as these data are critical to both current and potential partners for the development of voclosporin."

"In the context of the current market conditions, access to capital is limited," said CEO Dr. Robert Foster. "Therefore we find it necessary to conserve cash while continuing potential partnership discussions and evaluating other strategic alternatives."

In order to stay focused on the alternatives, Foster has resigned his position as executive chairman of the board.

- check out the Isotechnika release

ALSO: Synvista Therapeutics is sending out a financial SOS signal. In a release this morning the developer said that it will "focus its resources on maximizing the value of its diagnostic assets and to terminate all ongoing clinical trials of its product candidates alagebrium and SYI-2074." Furthermore, the Montvale, NJ-based company said that it is pursuing a variety of strategic alternatives aimed at raising cash. Unless a deal comes through, says Synvista, the "company's ability to continue operations beyond the second quarter of 2009 is in doubt." Release