MOUNTAIN VIEW, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) announced today that it has consolidated its operations, with a primary focus on the continued rapid development of AZ-004 (Staccato loxapine). The restructuring includes a workforce reduction of 52 employees, representing approximately 33% of the Company's total workforce. In addition, Alexza and Endo Pharmaceuticals, Inc. have agreed to mutually terminate their development agreement for AZ-003 (Staccato fentanyl), a product development candidate that has completed Phase 1 clinical testing. Alexza does not intend to commit additional resources to AZ-003 during 2009.
Alexza expects to reduce its expenses by approximately $21.5 million, net of severance costs, for fiscal year 2009, compared to fiscal year 2008, and approximately $11.1 million for fiscal year 2010, compared to fiscal year 2009. As of September 30, 2008, Alexza had $78.0 million in cash and investments. As a result of this consolidation, Alexza projects that it has available cash resources to maintain its currently planned operations into the second quarter of 2010.
AZ-004 is Alexza's lead product candidate, which is in late-stage clinical development for the acute treatment of agitation in patients with schizophrenia or bipolar disorder. The Company has previously announced positive results in both of its two Phase 3 trials of AZ-004, and expects to submit a New Drug Application for AZ-004 in early 2010. AZ-004 is being developed through Symphony Allegro, a product development partnership formed between Alexza and Symphony Capital, LLC.
"The most difficult aspect of these hard decisions is the fact that Alexza
has accomplished much in the past five years as a result of an incredible
amount of hard work and dedication by many emp
|SOURCE Alexza Pharmaceuticals, Inc.|
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