-- conducting the Company's Phase 2 High Dose Study for Zerenex;
-- continuing work on novel formulations of Zerenex and market research
-- terminating approximately 12 of 20 early-stage clinical studies of
-- 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
|SOURCE Keryx Biopharmaceuticals, Inc.|
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