Operations may be shuttered if capital is not raised.
Metabasis Therapeutics is reducing its workforce by 45 employees, or approximately 85%. This marks the third round of restructuring in the past six months, bringing the total number of employees down to seven.
Even though the company reported at the end of the first quarter that it had suffient capital to fund operations into July 2009, the company now finds itself in need of more money. In fact, Metabasis states that if it is unable to raise capital in the near-term, it may cease operations entirely.
In November 2008 and then January 2009, Metabasis let go of 35 and 38 employees, respectively. In addition, on May 21, Metabasis received a delisting notice letter from Nasdaq and has 15 calendar days to submit a plan to regain compliance.The company four-clinical stage compounds and three preclinical candidates. Partners include Merck & Co. and Roche.