Navigation Links
Keryx Biopharmaceuticals Announces Implementation of Strategic Restructuring Plan
Date:4/4/2008

Plan includes refocusing of operations and workforce reduction

NEW YORK, April 4, 2008 /PRNewswire-FirstCall/ -- Keryx Biopharmaceuticals (Nasdaq: KERX) today announced that it is implementing a strategic restructuring plan to reduce its cash burn rate and re-focus its development efforts. The plan, which was prompted by the negative outcome of the Company's pivotal SUN-MICRO Phase 3 clinical trial of Sulonex(TM) (sulodexide) for the treatment of diabetic nephropathy, and subsequent decision by the Company to terminate the ongoing SUN-MACRO Phase 4 clinical trial, is intended to conserve the financial resources of the Company and enable it to focus its efforts on programs and opportunities that management believes are most likely to provide long-term shareholder value.

The Company anticipates that the restructuring, which includes a workforce reduction of approximately 50%, will reduce its cash burn rate to approximately $10 million to $15 million for the remainder of the year. Following the workforce reduction, the Company will have approximately 25 full and part-time employees.

The Company expects to end the first quarter of 2008 with approximately $50 million of cash, cash equivalents, investment securities, interest receivable and license receivable. Of the $50 million, approximately $12 million is invested in auction note securities, which have failed auctions in 2008. Accounts payable and accrued expenses as of the end of the first quarter is expected to total approximately $17 million, and is primarily related to the completion and shut-down of the Sulonex clinical program and restructuring costs.

Additional elements of the Company's strategic restructuring and corporate re-focusing will include, without limitation:

-- conducting the Company's Phase 2 High Dose Study for Zerenex;

-- continuing work on novel formulations of Zerenex and market research

for Zerenex;

-- terminating approximately 12 of 20 early-stage clinical studies of

KRX-0401 (perifosine);

-- delaying the commencement of a KRX-0401 (perifosine) Phase 3 trial

until additional data are accumulated and analyses are completed from

on-going exploratory studies of perifosine as a treatment for the

following tumor types: renal cell, colon, hepatocellular, multiple

myeloma, waldenstrom's macroglobulinemia and sarcoma;

-- terminating our license agreement for KRX-0601 (UCN-01); and

-- closing the Company's San Francisco, California and Memphis, Tennessee

offices and the Company's Wisconsin manufacturing suite which was

built to support the commercialization of Sulonex, and divesting the

assets from these facilities.

In addition, the Company will explore opportunities to monetize portions of the Company's technology assets, which may include partnerships, strategic alliances and pursuit of creative product-specific financing alternatives.

As a result of this restructuring, the Company will incur between $12 million and $15 million of charges in the first quarter of 2008, primarily associated with employee severance benefits and a non-cash write-off of the assets of the Company's Sulonex manufacturing facility.

As part of the workforce reduction, the position of President of the Company was eliminated and, accordingly, as previously reported, Dr. Craig Henderson, will be leaving the Company, effective as of April 15, 2008.

The Company believes that after the restructuring is completed, it will have the financial resources required to pursue its priority programs and that the remaining staff possess the core competencies necessary to effectively advance its drug candidates.

Michael S. Weiss, the Company's Chairman and Chief Executive Officer, stated, "This has been a challenging process, but through these measures we believe that we have designed a strategy by which we will conserve our financial resources and strengthen our ability to execute on our goals to move our drug candidates forward, thereby better positioning the Company for future success." Mr. Weiss continued, "I would like to especially thank Dr. Craig Henderson for his long and dedicated service to the Company."

ABOUT KERYX BIOPHARMACEUTICALS, INC.

Keryx Biopharmaceuticals is focused on the acquisition, development and commercialization of medically important, novel pharmaceutical products for the treatment of life-threatening diseases, including renal disease and cancer. Keryx is developing Zerenex(TM) (ferric citrate), an oral, iron-based compound that has the capacity to bind to phosphate and form non-absorbable complexes. Zerenex is currently in Phase 2 clinical development for the treatment of hyperphosphatemia (elevated phosphate levels) in patients with end-stage renal disease, or ESRD. The Company is also developing KRX-0401 (perifosine), a novel, potentially first-in-class, oral anti-cancer agent that modulates Akt, a protein in the body associated with tumor survival and growth. KRX-0401 also modulates a number of other key signal transduction pathways, including the JNK and MAPK pathways, which are pathways associated with programmed cell death, cell growth, cell differentiation and cell survival. KRX-0401 is currently in Phase 2 clinical development for multiple tumor types. The Company also has an in-licensing and acquisition program designed to identify and acquire additional drug candidates. Keryx is headquartered in New York City.

Cautionary Statement

Some of the statements included in this press release anticipating future clinical and business prospects for our drug candidates may be forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Among the factors that could cause our actual results to differ materially are the following: our ability to successfully adjust our strategy and reduce our operating expenses in order to properly support the trials of our drug candidates; our ability to complete cost-effective clinical trials or meet anticipated the development timelines set forth above for the drug candidates in our pipeline, including Zerenex and KRX-0401; our ability to sell the $12 million of auction note securities in order to fund our operations; or other risk factors identified from time to time in our reports filed with the Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. We do not intend to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. This press release and prior releases are available at http://www.keryx.com. The information in our website is not incorporated by reference into this press release and is included as an inactive textual reference only.

KERYX CONTACT:

Lauren Fischer

Director - Investor Relations

Keryx Biopharmaceuticals, Inc.

Tel: 212.531.5965

E-mail: lfischer@keryx.com


'/>"/>
SOURCE Keryx Biopharmaceuticals, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Keryx Biopharmaceuticals to Present at the Cowen and Company 28th Annual Health Care Conference
2. Keryx Biopharmaceuticals Announces that SUN-MICRO Phase 3 Clinical Trial Fails to Meet Primary Efficacy Endpoint
3. Keryx Biopharmaceuticals, Inc. Announces Fourth Quarter and Year-End 2007 Financial Results
4. Keryx Biopharmaceuticals, Inc. to Hold Conference Call on Fourth Quarter and Year-End 2007 Financial Results on Monday, February 25, at 8:30 A.M. EST
5. Keryx Biopharmaceuticals Announces Additions to Management Team
6. Keryx Biopharmaceuticals Announces Upcoming Corporate Presentations
7. Keryx Biopharmaceuticals, Inc. Announces Third Quarter 2007 Financial Results
8. Keryx Biopharmaceuticals, Inc. to Hold Conference Call on Third Quarter 2007 Financial Results on Thursday, October 25, at 8:30 A.M. EDT
9. Keryx Biopharmaceuticals, Inc. Enters into Licensing Agreement with Japan Tobacco and Torii Pharmaceutical for Development and Commercialization of Hyperphosphatemia Drug in Japan
10. Keryx Biopharmaceuticals, Inc. Announces Conference Call to Discuss Strategic Alliance
11. Keryx Biopharmaceuticals, Inc. Announces Appointment of Michael P. Tarnok to Board of Directors
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/28/2016)... ... April 28, 2016 , ... Morris Midwest ... house for regional manufacturers at its Maple Grove, Minnesota technical center, May 11-12. ... Chiron and Trumpf. Almost 20 leading suppliers of tooling, accessories, software and ...
(Date:4/27/2016)... ... April 27, 2016 , ... The Pittcon Organizing Committee is ... Chuck has been a volunteer member of Committee since 1987. Since then, he has ... directors and treasurer and was chairman for both the program and exposition committees. In ...
(Date:4/27/2016)... and RESEARCH TRIANGLE PARK, N.C. ... UTHR ) announced today that Martine ... United Therapeutics will provide an overview and update on ... Annual Health Care Conference. The presentation ... 10:00 a.m. Eastern Time, and can be accessed via ...
(Date:4/27/2016)... ... April 27, 2016 , ... ... its Scientific Advisory Board. Dr. Lamka will assist PathSensors in expanding the use ... , PathSensors deploys the CANARY® test platform for the detection of harmful pathogens, ...
Breaking Biology Technology:
(Date:3/3/2016)... , March 3, 2016  FlexTech, a SEMI Strategic ... of Innovation, Research & Development, Leadership in Education, and, ... is the 9 th year of the FLEXI ... companies and individuals from past years . Judging ... a pre-described set of criteria, by a panel of ...
(Date:3/2/2016)... http://www.researchandmarkets.com/research/wzwqtz/global_biometrics ... "Global Biometrics Market in Hospitality Sector 2016-2020" ... , , Global biometrics market in the ... of around 27%   --> ... addition of the  "Global Biometrics Market in ...
(Date:3/1/2016)... SAN FRANCISCO , March 1, 2016  (RSAC ... every year, but a whopping $118 billion is lost ... due to overzealous and inaccurate fraud detection. At the ... shift in the way companies handle authentication by devaluing ... biometric and behavioral analytics. --> ...
Breaking Biology News(10 mins):