Left with $4.7 million, the company is forced to look for other sources of capital.

Panacos Pharmaceuticals is reducing its workforce from 33 employees to 15. The firm says the decision is due to the need to manage capital resources; as of December 8, its unrestricted cash, cash equivalents, and marketable securities totaled approximately $4.7 million.

“We are faced with the reality that we must take drastic measures to reflect the current market environment,” states Alan W. Dunton, M.D., president and CEO of Panacos.

While the company had $26.9 million at the end of the third quarter, Panacos recently had to pay Hercules Technology Growth Capital approximately $17.9 million with the termination of its loan agreement. Panacos is now left with $4.7 million.

Panacos says that it is seeking additional sources of capital to continue operations through financing, partnering, or sale of the company in full or in part. The firm has one clinical compound in Phase II trials called bevirimat (PA-457), a maturation inhibitor being studied in HIV-positive patients.

Panacos also has second- and third-generation HIV maturation inhibitor preclinical programs and an oral fusion program. The company has selected a lead compound, PA-161, for preclinical development in this oral HIV fusion inhibitor program.

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