Acusphere (ACUS) Announces Job Cuts and Salary Reductions

July 28, 2008 2:19 PM EDT

Acusphere Inc. (NASDAQ: ACUS) has reduced its employee base by 24 people, or about 24%, primarily in functions related to manufacturing of its lead product candidate, Imagify (Perflubutane Polymer Microspheres) for Injectable Suspension. In addition, all senior managers at the Vice President level and above are taking salary reductions of 10% or more effective August 1, 2008, to further decrease operating costs while Acusphere awaits U.S. Food & Drug Administration (FDA) review and potential approval of its New Drug Application (NDA) for Imagify. The Company has also given notification of termination to certain consultants and contractors. With the announced reductions, total employment at Acusphere is now 77 personnel.

As of June 30, 2008, Acusphere had unaudited cash and short-term investments of approximately $12 million. With the reductions announced to date, the Company anticipates a quarterly cash spend rate for the third and fourth quarters of 2008 of $8 to $9 million. On that basis, the Company's available funding should carry it well into the fourth quarter of this year. The Company expects to report its financial results for the quarter ended June 30, 2008 on August 11, 2008.

Acusphere, Inc. is a specialty pharmaceutical company that develops drugs and formulations of existing drugs using its porous microparticle technology.[SM]

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