Pipex Pharmaceuticals (PPXP) Announces Cost Reduction Measures; Job Cuts
ANN ARBOR, MI -- Mar 11, 2008 -- Pipex Pharmaceuticals, Inc. (AMEX:PP - News), a specialty pharmaceutical company developing innovative late-stage drug candidates for the treatment of neurologic and fibrotic diseases, announced today that it has implemented cost reduction measures in order to substantially reduce operating expenses given the anticipated delay in refiling its New Drug Application for oral tetrathiomolybdate (oral TTM) for the treatment of initially presenting neurologic Wilson's disease.
As part of a corporate restructuring, Pipex eliminated 14 positions in the areas of manufacturing, analytical, quality control, quality assurance, clinical, regulatory, diagnostic product development principally relating to the development of oral TTM and diagnostics division. Pipex has also found it necessary eliminate the position of Chief Scientific Officer, a position recently created by the appointment of Dr. David A. Newsome in October 2007.
Pipex's President, Dr. Charles L. Bisgaier has agreed to reduce his salary from $295,000 per annum to $0. Dr. Bisgaier will be eligible to receive a contingent bonus in the event that Pipex is acquired or the company's share price retraces or exceeds the level prior to receipt of January 28th level.
"Since early February, we have quickly taken remedial action in order to reduce our operating expenses and sharpen our focus on the operational tasks at hand. We closed the calendar year with approximately $11.5 million in cash which given our cost reductions should allow Pipex to achieve several value driving events," said Steve H. Kanzer, CPA, JD, Pipex's Chairman & Chief Executive Officer.
Mr. Kanzer went onto say, "I would like to thank Dr. Newsome and our departing employees for their heartfelt service. I would also like to thank Dr. Bisgaier for working for no cash compensation during this time."
About Pipex Pharmaceuticals, Inc.
Pipex Pharmaceuticals, Inc. ("Pipex") is a specialty pharmaceutical company that is developing proprietary, late-stage drug candidates for the treatment of neurologic and fibrotic diseases. Pipex's strategy is to exclusively in-license proprietary, clinical-stage drug candidates and complete the further clinical testing, manufacturing and regulatory requirements sufficient to seek marketing authorizations via the filing of New Drug Applications (NDAs) with the FDA in the US and Marketing Application Authorizations (MAAs) with the European Medicines Evaluation Agency (EMEA). For further information please visit www.pipexinc.com.
This press release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, that reflect Pipex Pharmaceuticals, Inc. and subsidiaries ("we" or "our") current expectations about its future results, performance, prospects and opportunities, including statements regarding the results of this management change and corporate restructuring, potential use of oral tetrathiomolybdate (formerly COPREXA) as well as the resolution of any of the deficiencies raised by the FDA noted in this announcement, including any additional safety and efficacy concerns that the FDA has raised, including the potential delay in potential filing or approval as well as the cost and expense of conducting any additional testing, development and/or clinical trials required by the FDA, the prospects for any regulatory filings in the treatment of neurologic Wilson's disease, including and/or that the FDA will agree with our analysis of data supporting the safety, clinical efficacy, manufacturing, stability and other regulatory requirements necessary for TTM to be approved for use in neurologically presenting Wilson's disease or that even if approved for initial indication, that we will be able to conduct and complete necessary initial and registration clinical trials required to support and receive FDA approval for a Supplemental New Drug Application to market TTM for the treatment of other disease indications, such as, idiopathic pulmonary fibrosis, Alzheimer's disease and Huntington's disease, for example. Where possible, the Company has tried to identify these forward-looking statements by using words such as "anticipates," "believes," "intends," or similar expressions. These statements are subject to a number of risks, uncertainties and other factors that could cause actual events or results in future periods to differ materially from what is expressed in, or implied by, these statements, including risks set forth in our filings with the Securities and Exchange Commission. We cannot assure you that we will be able to successfully develop or commercialize products based on our technologies, including oral TTM, TRIMESTA(TM), zinc monocysteine, SOLOVAX(TM), EFFIRMA(TM) or Anti-CD4 802-2, particularly in light of the significant uncertainty inherent in developing, manufacturing and conducting preclinical and clinical trials of new pharmaceuticals, and obtaining regulatory approvals, that our technologies will prove to be safe and effective, that our cash expenditures will not exceed projected levels, that we will be able to obtain future financing or funds when needed, that product development and commercialization efforts will not be reduced or discontinued due to difficulties or delays in clinical trials or due to lack of progress or positive results from research and development efforts, that we will be able to successfully obtain any further grants and awards, maintain our existing grants which are subject to performance, that we will be able to patent, register or protect our technology from challenge and products from competition or maintain or expand our license agreements with our current licensors, or that our business strategy will be successful. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise, other than as required by law.
Contact: For Further Information Contact:
Steve H. Kanzer, CPA, JD Chairman and Chief Executive Officer (734) 332-7800
Thomas Redington (Investor Relations) Redington, Inc. (203) 222-7399
Source: Pipex Pharmaceuticals, Inc.