Epix reduces its workforce

By AuntMinnie.com staff writers

October 23, 2008 -- MRI contrast developer Epix Pharmaceuticals is reducing its workforce, effective immediately, the Lexington, MA-based company said.

Epix will cut its workforce by approximately 23% and narrow the focus of its R&D efforts, devoting its resources to its lead clinical programs, which include PRX-03140 for the treatment of Alzheimer's disease and PRX-08066 for the treatment of patients with chronic obstructive pulmonary disease.

Epix estimates that this reduction in force will result in a decrease to its annual salary and benefits costs of approximately $3.0 million. The company also will realize a reduction in future R&D spending associated with the narrowing of its research focus. Estimated charges of approximately $300,000 will be recorded in the fourth quarter of 2008 in connection with one-time employee termination benefits.

The company added that it plans to continue efforts to commercialize its Vasovist MRI contrast agent. Epix recently won back marketing rights to the product from Bayer Schering Pharma of Berlin, which decided to end its relationship with Epix.