Struggling to counter the effects of disappointing trial data, CV Therapeutics unveiled a restructuring effort aimed at chopping out $75 million a year in expenses. The cuts include an unspecified number of jobs and a slice of its R&D budget. The actions quickly followed the announcement that Third Point investors group has taken a 9.9 percent stake in CV. The budget axe is falling just weeks after the company announced that its experimental drug ranolazine had failed to hit a primary endpoint. Its stock price immediately lost a third of its value on the news.
"Based on the results from the MERLIN TIMI-36 study and our historical Ranexa revenue trend, we believe that the difficult but necessary action we have taken to significantly reduce our operating expenses improves the company's potential to begin generating profits sooner, by allowing us to maximize the potential upside of future revenue growth, new potential indications and partnership opportunities with Ranexa, regadenoson or our other pipeline products," said CEO Louis G. Lange.
- here's the report on CV from TheStreet.com
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