Memory Pharmaceuticals Corp. announced that it has realigned its operations, reallocated resources and extended the preclinical research portion of its PDE10 collaboration with Amgen. The company will focus its near-term and mid- term efforts on two partnered programmes, its nicotinic alpha-7 receptor agonist collaboration with Roche and the PDE10 collaboration with Amgen, and two proprietary programmes, its PDE4 inhibitor and 5-HT6 antagonist programmes.
"After conducting a thorough review of our pipeline, opportunities and financial resources, we have decided to focus on those areas where we can most optimally apply our expertise to create significant clinical and shareholder value," stated Vaughn M. Kailian, president and chief executive officer, Memory Pharmaceuticals. "Consequently, we have reduced our discovery research effort in favour of progressing our four major programmes."
In connection with this new operational focus, the company implemented certain initiatives such as reallocation of resources to support its key development and clinical programmes, reduced its overall efforts dedicated to discovery research, while maintaining its capabilities in CNS drug discovery to support long-term growth.
The company's overall headcount has been reduced by 20 per cent and the company has shifted its resources toward development activities. The new structure will support the company's preclinical and clinical activities and business development initiatives.
The company plans to dedicate the majority of its resources and investments to support continued development of key partnered and proprietary programmes: Nicotinic Alpha-7 Receptor Agonist Collaboration with Roche. MEM 3454, the lead compound in the company's nicotinic alpha-7 receptor agonist collaboration with Roche, demonstrated a statistically significant effect on multiple measures of cognition in a recent phase IIa study in Alzheimer's disease. Memory Pharmaceuticals is currently evaluating the compound as a treatment for cognitive impairment associated with schizophrenia (CIAS) in a phase IIa trial and expects to report top-line data from that trial in the fourth quarter of 2008.
In addition, the company expects to initiate a biomarker study for MEM 3454 in schizophrenia this summer, with results expected by early 2009. The biomarker study will be funded by Roche. Memory Pharmaceuticals also expects to complete its phase I programme for MEM 63908 and report top-line results in the fourth quarter of 2008.
The company has amended its collaboration with Amgen focused on the development of PDE10 inhibitors for certain neurological and psychiatric disorders. Memory Pharmaceuticals has agreed to commit and fund certain preclinical research resources and provide increased access to its screening technologies to the collaboration over the next twelve months. In exchange, Memory Pharmaceuticals will receive increased milestone payments upon the achievement of certain predefined development events for the programme. In addition, the parties expanded the scope of compounds eligible for higher tier royalties under the agreement.
Memory Pharma's PDE4 inhibitor programme includes MEM 1414, along with MEM 1917 and several backup compounds. The company believes that PDE4 inhibitors could be beneficial in treating a number of cognition-related CNS disorders and inflammatory diseases. MEM 1414 has demonstrated efficacy in a broad range of preclinical cognition and anti-inflammatory models. In addition, phase I studies have demonstrated a favorable safety profile for the compound overall and particularly with respect to nausea and vomiting, which has limited the development of other PDE4 compounds.
The company plans to progress MEM 1414 into a phase IIa trial by the end of 2008. 5-HT6 Antagonist Programme. 5-HT6 antagonists are potential treatments for Alzheimer's disease, schizophrenia, attention deficit disorder and obesity. Memory Pharmaceuticals has generated a portfolio of novel, potent and selective 5-HT6 antagonists and is evaluating several lead compounds as potential development candidates. The company plans to advance the programme into clinical trials by the end of 2008.