MRI contrast developer Epix Pharmaceuticals reported that, as a result of the U. S. Food and Drug Administration's second approvable letter regarding its blood-pool contrast agent Vasovist, it will eliminate approximately 50% of its workforce in January 2006.
The Cambridge, MA-based firm said the reductions will affect both the research and development and the general and administrative areas of the company. Epix, which had 93 employees last month, said it will have approximately 48 employees following the staff reduction.
The workforce reduction will result in a one-time charge of approximately $1.2 million, which will be recognized in the fourth quarter of 2005, according to Epix.
In other news, the firm's board of directors has exercised its option to extend the contract of interim CEO Michael Astrue for two additional months, thereby bringing his term as interim CEO to six months. Astrue joined Epix in September this year with a contract term of four months, plus an option for two additional months.
All other terms of the original contract remain the same, the company said.
By AuntMinnie.com staff writers
December 14, 2005
Related Reading
Epix hit with Vasovist setback, November 23, 2005
Schering, Epix score European approval for Vasovist, October 5, 2005
Webb steps down at Epix, September 15, 2005
Epix sales fall, net loss grows, July 28, 2005
Epix makes management moves, July 6, 2005
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