Cytokinetics, Incorporated announced plans to realign its workforce and operations in line with a strategic reassessment of its research and development activities and corporate objectives. As a result, the company will focus research activities to its muscle biology programmes while advancing drug candidates in its clinical pipeline. To implement this plan, the company is reducing its workforce by approximately 29 per cent and will be discontinuing research activities directed to oncology.
"After critically reviewing our current research and development as well as other business activities, we have made the decision to reposition our company to what we believe may be the most attractive value generating opportunities. In particular, going forward we will be better positioned to focus to programmes that leverage our competitive advantages in muscle biology and contractility," stated Robert I. Blum, Cytokinetics' president and chief executive officer. "We believe these changes will result in the necessary savings to enable our advancement of CK-1827452 while also affording us resources to advance potential drug candidates in each of our contractility programmes directed at skeletal and smooth muscle to clinical trials and continuing our innovative research in muscle biology."
Following the implementation of this realignment and restructuring programme, Cytokinetics will have reduced its workforce to 111 people. The company is providing severance, employee benefit continuation and career transition assistance to the employees directly affected by the restructuring. Cytokinetics anticipates incurring restructuring charges of approximately $2.5 million in the third quarter of 2008, primarily associated with personnel-related termination costs. The company's operating expenditures on a cash basis for the first half of 2008 was approximately $33.0 million. The Company anticipates its full year 2008 cash operating expenditures to be between $76.0 and $81.0 million, including severance costs and its current assumptions associated with costs related to its clinical trials and consultants. As a result of this restructuring, the company's cash operating expenses are anticipated to decrease between $12.0 and $16.0 million in 2009.
"Decisions like this are especially difficult," stated Blum. "We want to express our deep appreciation to the highly talented and dedicated individuals who will be leaving Cytokinetics. They have contributed importantly to our company in many ways and we are grateful for their insights, diligence and innovation which have propelled the company forward and challenged us to be our best. We wish them all well and rededicate ourselves to the company's vision."
Cytokinetics is a biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule drugs that may address areas of significant unmet clinical needs.