Adolor (ADLR) to Cut Headcount by 45 Employees, or 28% of Workforce
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Adolor Corporation (Nasdaq: ADLR) today announced a reduction in force of approximately 45 employees, or 28% of its workforce, as well as other cost saving initiatives intended to lower the Company's annualized net operating cash burn. The Company's primary focus going forward will continue to be on its first commercial product, ENTEREG(R) (alvimopan), which was launched in mid-2008, and the advancement of its clinical programs. The Company is restructuring its discovery group to focus on late stage, preclinical compounds, with fewer resources dedicated to early-stage programs.
Once this reduction in force and other cost savings initiatives are fully in place later in 2009, the Company expects that annualized cash burn will be reduced by approximately $12 million, or about 25% of Company cash expenditures not directly related to ENTEREG. Based on its revised operating plan, the Company anticipates that it will end fiscal year 2009 with approximately $85 million in cash and investments. During the second quarter of 2009, the Company expects to record a cash restructuring charge of approximately $2.5 million, primarily related to severance and related expenses. The Company also expects to record a non-cash charge of up to $3.5 million associated with the write-off of certain leasehold improvements and fixed assets, among other things.
This restructuring did not include expense reductions related to ENTEREG, which is co-promoted by the Company alongside GlaxoSmithKline's national, hospital-based sales force. The Company also will continue clinical development efforts on its delta opioid receptor agonist program that is partnered with Pfizer Inc., as well as ADL7445, a proprietary, mu-opioid receptor antagonist that is expected to begin Phase 1 testing in 2009 for opioid-induced bowel dysfunction.
Once this reduction in force and other cost savings initiatives are fully in place later in 2009, the Company expects that annualized cash burn will be reduced by approximately $12 million, or about 25% of Company cash expenditures not directly related to ENTEREG. Based on its revised operating plan, the Company anticipates that it will end fiscal year 2009 with approximately $85 million in cash and investments. During the second quarter of 2009, the Company expects to record a cash restructuring charge of approximately $2.5 million, primarily related to severance and related expenses. The Company also expects to record a non-cash charge of up to $3.5 million associated with the write-off of certain leasehold improvements and fixed assets, among other things.
This restructuring did not include expense reductions related to ENTEREG, which is co-promoted by the Company alongside GlaxoSmithKline's national, hospital-based sales force. The Company also will continue clinical development efforts on its delta opioid receptor agonist program that is partnered with Pfizer Inc., as well as ADL7445, a proprietary, mu-opioid receptor antagonist that is expected to begin Phase 1 testing in 2009 for opioid-induced bowel dysfunction.
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