Middlebrook downsizes following Nasdaq notice

Westlake, TX-based MiddleBrook Pharmaceuticals announced that it has received a notice from Nasdaq that the company's listed securities did not maintain a minimum bid price of $1 per share for 30 consecutive days. The company has until June 1, 2010 to regain listing compliance.

The company also announced today that it's reducing its field sales force and corporate staff. Sales managers and field sales representative positions will be cut by one-third, to approximately 145. Meanwhile, the company will lay off about 20 percent of its corporate staff. According to MiddleBrook's statement, the changes will allow it to focus its field sales resources in territories currently generating over 80 percent of the prescription volume for Moxatag (amoxicillin), a strep throat remedy and the company's only marketed product. This is the company's second round of layoffs this year. Lagging Moxatag sales led to the first downsizing in September. At that time it reduced corporate staff by 20 percent and its sales force by 25 percent. 

MiddleBrook expects to achieve approximately $19 million in annualized savings as a result of the reduction announced today. The company now anticipates that its total operating expenses for 2010 will range between $46 million and $51 million, versus its previous guidance of operating expenses between $65 million and $70 million.

- here's MiddleBrook's release

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