PreMD decided to close its McMaster Laboratory, scale back its head office in Toronto, eliminate all staff, and terminate clinical programs and product licenses. This follows a reported C$1.8 million, or about $1.5 million, third-quarter net loss last year and an ongoing FDA appeal concerning the company's noninvasive test for predicting heart disease.
The third quarter financial statement also reported a decrease of C$13,000, or about $10,000, in spending on clinical trials for cancer and C$218,000, or about $175,000, in salaries and benefits for research.
In an effort to limit future cash expenditures, the company will also terminate employee agreements of its officers.
In January 2008, the company received a not substantially equivalent letter from the FDA concerning its premarket submission to expand the use of its skin cholesterol test as a diagnostic for cardiovascular risk.
"We will be moving to a skeleton staff and working with key executives to explore alternatives that may allow our company to continue to operate until the outcomes of our FDA appeal and patent loss lawsuit are known," says Brent Norton, M.D., president and CEO of PreMD. "The timing of our circumstances is unfortunate as our FDA appeal appears to be progressing but without a definite time frame of knowing when we will have an outcome."