Early discovery activities and 45 employees will be nixed.
Adolor 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.