Wednesday, December 31, 2008

Pro-Pharmaceuticals lays off president, chief scientist

By Marc Songini

Newton-based Pro-Pharmaceuticals Inc. announced it has “let go” its president, chief scientist, and one other employee, citing the need for cash as the reason. And subsequent to its NYSE Alternext US stock exchange de-listing, the company also announced it will seek Over-the-Counter Bulletin Board (OTCBB) status or another market for its securities.

The president, according to the Pro-Pharmaceuticals (NYSE: PRW) website, is Theodore Zucconi, who has held the position since October 2007. He was formerly president of Implementation Edge, a management consulting firm. The company’s chief scientist is co-founder and patent co-inventor Anatole Klyosov. He was formerly vice president, research and development, at Kadant Composites Inc., a subsidiary of Westford-based Kadant Inc. (NYSE: KAI), a maker of technology systems for the pulp and paper industries.

Additionally, the company explained it remains out of compliance with the NYSE Alternext US exchange’s Section 1003 guidelines. The company met on Dec. 23 with NYSE Alternext US to appeal the exchange’s decision to de-list its common stock. On Dec. 30, Pro-Pharmaceuticals learned the exchange had denied the company’s appeal and delisting had begun. However, Pro-Pharmaceuticals has already started the OTCBB listing process and will notify investors of its new stock symbol once that becomes available, the company said. 

The company is also wrapping up the process of a state securities filing. Last November, Pro-Pharmaceuticals filed a registration statement with the U.S. Securities and Exchange Commission (SEC) and will file an amended registration statement once it receives approvals from state securities authorities. The money raised from this transaction will fund a New Drug Application (NDA) for the U.S. Food and Drug Administration (FDA). The NDA will be for its lead product candidate Davanat to be co-administered with chemotherapy agent 5-FU to treat late-stage colorectal cancer patients.

The firm held a pre-NDA meeting with the FDA on Dec. 22 to review the PK study necessary to wrap its filing. The FDA’s comments are expected in January.

Pro-Pharmaceuticals is developing carbohydrate polymers-based compounds to treat diseases such as cancer.