NPS Pharmaceuticals (NPSP) Tops Q4 EPS by 6c, Announces Restructuring

March 14, 2007 1:16 PM EDT

NPS Pharmaceuticals, Inc. (Nasdaq: NPSP) reported 2006 financial results, reviewed recent corporate and clinical progress and announced a significant restructuring of operations and a new business plan to advance its late-stage product candidates, PREOS (full-length parathyroid hormone [rDNA origin] for injection) and teduglutide.

NPS is taking the following actions to support the development of its late-stage products and create sustainable long-term value for patients and shareholders:

1) reducing current staff from 196 to 35 employees by the end of 2007; closing facilities in Salt Lake City and Toronto and consolidating operations in New Jersey;

2) seeking financial or commercial partners to support the full development of our Phase 3 products; and

NPS President and CEO Tony Coles, M.D., stated: "The main thrust of these actions is to preserve cash and create additional flexibility to develop the clinical and commercial potential of our late-stage pipeline. In 2006, we exceeded our financial guidance, made important clinical progress with teduglutide and determined next steps for PREOS in the United States while our partner, Nycomed, launched the drug in Europe. In 2007, we plan to advance these compounds by securing commercial or financial partners, completing the Phase 3 Short Bowel Syndrome (SBS) and dose-escalation studies for teduglutide and exploring new indications for both drugs. With this new business model, we will focus on high-value specialty indications and rely upon partners to support large indications. We will move forward with a consolidated base of operations and a much smaller team working through contract research organizations. We believe these steps will enable us to maximize the value of our Phase 3 products while reducing cash burn."

Dr. Coles commented, "Our financial position has led us to evaluate a number of strategic options for advancing our pipeline. After many months of analysis and internal discussion, we have decided that the most prudent way for us to maximize the value of our pipeline is to focus our own clinical work on high-value specialty indications, manage the execution of this activity through contract research organizations and find partners for indications we can't afford to pursue ourselves."

Separately, NSPS reported a Q4 loss of $0.30, 6 cents better than estimates. Revenues were $24.1 million vs. $10.49 million consensus.

Related Categories

Earnings
Guidance

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?