is cutting 38% of its staff, or 45 employees, and is restructuring its discovery program. The company’s primary focus going forward will be on its first marketed product, Entereg
, and the advancement of clinical programs. Based on its revised operating plan, Adolor anticipates that it will end this fiscal year with approximately $85 million in cash and investments.
With employee reductions and fewer resources dedicated to early-stage preclinical programs, Adolor expects to lower annualized cash burn by approximately $12 million. This makes up about 25% of the firm’s cash expenditures that are not directly related to Entereg.
During the second quarter of 2009, a cash-restructuring charge of approximately $2.5 million is expected linked to severance. The firm also anticipates recording a noncash charge of up to $3.5 million associated with the write-off of certain leasehold improvements and fixed assets, among other things.
Entereg is meant to treat constipation after bowel resection surgery and is co-promoted with GSK. Launched in mid 2008, the drug had net product sales of $1.2 million last year and $1.4 million in the first quarter of 2009.
Adolor’s clinical pipeline consists of two delta-opioid receptor agonists partnered with Pfizer in Phase II development for chronic pain and a mu-opioid receptor antagonist that is expected to begin Phase I testing this year for opioid-induced bowel dysfunction.