Hit by a clinical trial delay triggered by a surprise change-up at the FDA, Canada's Vasogen has hit the brakes on spending and announced plans to lay off 85 percent of its work force. The Canadian Press did the math and concluded that based on the 120 workers on the company's payroll at the end of last year, the layoffs would claim more than 100 workers. And Vasogen has brought in JMP Securities to study the company's strategic alternatives.
Six weeks ago Vasogen announced that the clinical trial for its heart failure therapy Celacade--its lead program--had been questioned by the FDA's Center for Biologics Evaluation and Research, which had taken over from the Center for Devices and Radiological Health as lead reviewer. Celacade has been approved in Europe. Its European marketing partner, Grupo Ferrer, had told Vasogen that the uncertainty in the U.S. could cost it revenue in Europe. Vasogen is now seeking "strategic alternatives" for European marketing with Grupo Ferrer.
"We cannot financially justify maintaining our existing infrastructure in light of the regulatory challenges facing Acclaim II and the revenue forecast received from Ferrer," said Chris Waddick, president and CEO of Vasogen.
- see Vasogen's release
- check out the report in the Canadian Press
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