Thursday, October 23, 2008

Epix slashes 23 percent of workforce

By Mass High Tech Staff

Epix Pharmaceuticals Inc. has announced a plan to cut about 23 percent of its workforce and tighten its research and development in an effort to save money.

To go into effect immediately, the Lexington-based therapeutics firm is expected to reduce its 119 employee staff, as listed in the company’s second quarter financial report, by about 27 workers, effective immediately. The layoffs would save the company about $3 million in salary and benefits and would cost about $300,000 in termination fees, Epix officials report.

Additionally, Epix (Nasdaq: EPIX) plans to focus its efforts on PRX-03140 to treat Alzheimer’s disease, PRX-08066 to treat chronic pulmonary disease and pulmonary hypertension and the company’s preclinical partnerships with GlaxoSmithKline plc and Cystic Fibrosis Foundation Therapeutics.

Last week, the company received a notice of noncompliance from The Nasdaq Stock Market for failing to maintain the minimum $50 million market capitalization for continued listing.

Epix also reported in August that it has entered into a $50 million financing agreement with Kingsbridge Capital Ltd., a London-based investment group that has committed to provide up to $50 million during the next three years through the purchase of newly issued shares of Epix common stock.

Epix, founded in 1988 as Metacorp Inc., is a biopharmaceutical company focused on therapeutics through the use of an in silico drug discovery platform. The company reported a net loss of $62.8 million on revenue of $14.96 million in 2007.