PLYMOUTH MEETING, Pa., March 30 /PRNewswire-FirstCall/ -- Genaera Corporation (Nasdaq: GENR) today announced that it will implement a plan to conserve existing cash resources in order to maintain the ability to pursue business development strategies for trodusquemine (MSI-1436), the first-in-class, highly selective inhibitor of PTP1B and Genaera's lead drug candidate for the treatment of type 2 diabetes and obesity, and explore strategic alternatives. The Company will also actively seek ways to monetize the anti-IL9 antibody (MEDI-528) and pexiganan programs.
The plan will reduce operating expenditures leaving cash resources available for strategic deployment and result in an approximate 80 percent reduction in headcount by May 1, 2009.
"We believe it is prudent to take all appropriate measures to conserve existing capital while weighing our options going forward," commented Jack Armstrong, President and Chief Executive Officer of Genaera.
Genaera estimates that it will incur restructuring charges of approximately $1.3 million in the second quarter of 2009 associated with the reduction in force. As of December 31, 2008, Genaera had cash, cash equivalents and short-term investments of approximately $8.1 million.
Genaera Corporation is developing trodusquemine (MSI-1436), for type 2 diabetes and obesity currently in phase 1 clinical testing and has a fully out-licensed partnership with MedImmune, Inc. that is in phase 2 clinical testing in asthma. For further information, please see our website at www.genaera.com.
This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertaintie
|SOURCE Genaera Corporation|
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