NeoPharm slashes jobs in restructuring

In the wake of poor trial results and demands from the FDA for additional data for its drug Cintredekin Besudotox, NeoPharm is restructuring and cutting its staff to reduce costs. Chief Medical Officer and Executive Vice President Jeffrey Sherman is stepping down, and Executive Vice President of Commercial Operations Timothy Walbert will also be leaving NeoPharm. In addition, NeoPharm is cutting 15 jobs--about 42 percent of its workforce. This isn't the first time NeoPharm has had to cuts its staff. Last May the company let about a quarter of its workforce go in an effort to reduce expenses by $7 million.

"I have initiated an extensive evaluation of our current programs and long-term opportunities. This review is well underway and our management team has made significant progress in identifying several key areas to eliminate redundancies in our current operations," commented Laurence Birch, President and CDO of NeoPharm. "Our long-term success depends on our ability to capitalize on the intellectual property the Company has developed to date. As such, in the coming months we will be completing a comprehensive strategic review of our entire portfolio of projects and products including Cintredekin Besudotox and our Liposome products in an effort to establish a comprehensive long-term plan with appropriate milestones

- see the release from NeoPharm for more