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Print Edition StoriesWednesday, March 4, 2009
Acusphere to cut jobs, close Watertown facility
By Mass High Tech staff
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Watertown-based pharmaceutical development company Acusphere Inc. has announced cost reduction plans that include 40 job cuts, the closing of its Watertown facility, consolidation at the company’s Tekwsbury manufacturing site and a Form 15 filing with the U.S. Securities and Exchange Commission. The restructuring is related to company efforts to add cash flow and help with U.S. Food and Drug Administration discussions over the approval of its Imagify for Injectable Suspension product.
Acusphere (OTCBB: ACUS) said the 40 job losses represent about two-thirds of the company staff and will affect roles in drug development, quality systems, manufacturing, regulatory, finance and administration. Company senior vice president and chief financial officer Lawrence Gyenes is included in the expected layoffs, with no plan to replace his position, Acusphere officials reported. The workforce reduction will save the company about $3.9 million annually.
The company also signed an agreement to end the lease on its Watertown headquarters, which is expected to save Acusphere about $3.6 million through 2012.
The voluntary Form 15 filing calls for the suspension of Acusphere’s SEC reporting need. As a result, Acusphere’s common stock will not be able to be traded on any national stock exchange, nor the OTC Bulletin Board; Trading may still take place on the Pink Sheets.
Acusphere battled a tough 2008 that culminated in December with the FDA rejection of its target product, Imagify. The product is an investigational injectable imaging drug that uses ultrasound to diagnose coronary artery disease. The ultrasound technique would provide an alternative to standard nuclear stress testing, company officials reported. Prior to the FDA announcement, Acusphere received multiple Nasdaq delisting warnings and announced layoffs of 24 employees, about a quarter of its staff, in July. In October, the company announced a $20 million debt offering agreement with biopharmaceutical firm Cephalon Inc. At the time, Acusphere CEO and president Sherri C. Oberg said in a statement that the agreement would help finance the FDA approval process of Imagify.
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