As a result of a 40.05 per cent decline in annual sales of its lead drug Visudyne, QLT Inc. slashed 115 jobs or approximately 45 per cent of the total workforce at its Vancouver headquarters and its US subsidiaries, including members of its management team.
Apart from the reduction in force, the company will also divest itself of QLT USA, whose primary assets include the Eligard (by Sanofi-aventis) product line for prostate cancer, Aczone, a dermatology product for the treatment of acne vulgaris, and the Atrigel drug delivery system, either in a single transaction or series of transactions. Further reductions in force are expected in 2008 as the Company's assets are divested under the restructuring.
QLT plans to focus its ongoing business primarily on its Visudyne franchise and its clinical development programs related to its punctal plug delivery technology and its photodynamic therapy dermatology technology.
As part of this restructuring initiative Alain Curaudeau will be departing from his role at QLT as senior vice president, Portfolio & Project Management and Acting senior vice president, Research and Development, together with several members of senior management. Coincident with the restructuring Dr. Julia Levy, who co-founded QLT in 1981, has advised the company she is retiring from her position as executive chair, Scientific Advisory Board and all other formal QLT activities.
"It is extremely difficult to see so many dedicated and talented individuals leaving QLT. I want to thank all of these people for their contributions to our successes and perseverance through challenging periods of time. On behalf of the entire company, I also want to thank Julia Levy for her leadership and inspiring presence at QLT over the past twenty-seven years," said Bob Butchofsky, president and chief executive officer.
The company expects to achieve the certain milestones in Visudyne, Drug in Punctal Plugs for Glaucoma and Photodynamic therapy with Lemuteporfin (QLT0074).
Completion of enrolment in the RADICAL combination study of Visudyne with six-month results expected in Q4 2008. While IND filing for the Drug in Punctal Plugs for Glaucoma with drug technology and initiation of a phase I/II clinical trial in glaucoma patients in H1, with results on plug retention and drug elution expected by year end 2008, human proof-of-concept studies for the treatment of moderate to severe acne expected to be completed in 2008.
The company expects to gain further insight into the strategic value of these assets as clinical milestones are met. The Board of Directors will continue to evaluate strategic options regarding these assets as they progress through their clinical development.
A restructuring charge of approximately $7.5 million will be recorded in 2008, the company said.
QLT Inc. is a global biopharmaceutical company dedicated to the discovery, development and commercialisation of innovative therapies.