A.P. Pharma is letting go of 11 employees, or 34% of its work force. The company believes that this move will provide the resources needed to secure approval of its treatment for chemotherapy-induced nausea and vomiting.
The drug, APF530, is a long-acting formulation of granisetron that utilizes the company’s Biochronomer™ drug delivery system. An FDA decision is expected in the early part of 2010.
This marks the second staff cut the company has made since October. With 18 positions being dropped in the first round, the firm is now left with 22 employees. It expects one-time costs associated with this most recent headcount reduction to be approximately $350,000, which will be recorded in the second quarter.
Besides the workforce reduction announced last year, A.P. Pharma also reported putting its other programs on hold, including APF112 (Phase II, long-acting local anesthetic) and APF580 (preclinical-stage opioid). The company expected these moves and other cost-cutting strategies to carry it through the third quarter of 2009. In fact, even at the end of this year’s first quarter, A.P. Pharma said that the $7.5 million it had on hand in cash would be enough to take it through the end of this year.
In April, A.P. Pharma received a delisting notification from NASDAQ and has since submitted a plan to regain compliance.