Memory Pharmaceuticals Corp. announced that it is implementing a reduction in its workforce designed to reduce its costs and direct its resources toward its clinical development programmes.

As part of this plan, the company's workforce will be reduced by approximately 55 per cent across all areas of the business. The cost reductions associated with the eliminated positions will allow the company to continue to execute its development strategy and support its key programmes as planned, including the ongoing and expected trials for its clinical-stage drug candidates.

The company also announced that Michael P. Smith, vice president of business development, will become chief financial officer, replacing James R. Sulat. . Sulat will remain with the company through a transition period.

"We are committed to the advancement of our pipeline, and this decision will ensure that we have the resources and human capital to execute our development strategies for our partnered and proprietary programmes," stated Vaughn M. Kailian, president and chief executive officer of Memory Pharmaceuticals. "We are focused on advancing our candidates through key clinical trials, such as our phase 2 development programme for MEM 3454 in cognitive impairment associated with schizophrenia and our phase 1 programme for MEM 63908, both of which are partnered with Roche. In addition, we look forward to initiating a phase 2a trial for our lead PDE4 inhibitor, MEM 1414, commencing a phase 1 programme for MEM 68626, and continuing to collaborate with Amgen on the development of PDE10 inhibitors."

Under the workforce reduction plan, approximately 50 per cent of the affected positions will be eliminated immediately and the remainder will be eliminated over the next six months.

Kailian continued, "We greatly appreciate the significant contributions of those employees affected by this decision, particularly those employees who have been with Memory through its growth from an early-stage research organization to the clinical-stage development company it is today."

Memory Pharmaceuticals Corp., a biopharmaceutical company, is focused on developing innovative drugs for the treatment of debilitating CNS disorders, many of which exhibit significant impairment of memory and other cognitive functions, including Alzheimer's disease and schizophrenia.