Sunesis Pharmaceuticals, Inc. announced that it is reducing its workforce by approximately 25 per cent, and implementing a revised operating plan that focuses its efforts on generating definitive data from its lead programmes while streamlining the company's operations and extending its financial resources beyond 2008.
Based on a rigorous assessment of its product portfolio, Sunesis' top priority is the advancement of its lead product candidate, SNS-595, for the treatment of acute myeloid leukaemia (AML). Having seen clinical activity and a favourable therapeutic profile in its ongoing phase 1 single-agent clinical trial of SNS-595, Sunesis is working closely with its clinical and regulatory advisors to design a registration trial for the treatment of elderly AML patients which it plans to initiate by the end of 2008. Additionally, Sunesis will soon begin dosing patients in a Phase 1b clinical trial of relapsed AML patients, combining SNS-595 with cytarabine, the leading treatment standard.
In addition to its development activities in AML, over the next eighteen months Sunesis expects to continue to advance its ongoing studies of SNS-595 in ovarian cancer, SNS-032 in B-cell malignancies and SNS-314 in solid tumours.
Positive data from any of these studies could support registration strategies or one or more significant development-stage collaborations. Sunesis' refocused research team will continue to generate insights on the chemistry and biology of the company's product candidates that may inform and guide clinical trials, to advance novel, small molecule inhibitors into the company's early-stage pipeline and to support the company's current partnership.
In line with these portfolio decisions, Sunesis is reducing operating expenses primarily in the research and general & administrative areas. As part of the reorganization, the company is eliminating a total of 35 full-time employee positions, and will now have 108 employees. Sunesis expects that this realignment of personnel, operations and programs will reduce annual expenses by more than $10 million below its planned levels for the next several years.
"With the talent, focus and commitment of the Sunesis team, we have the opportunity to generate transforming clinical data in the coming quarters. By proactively undertaking the realignment, we can focus on the execution of our revised operating plan without needing to raise additional funds or entering into a corporate partnership in 2008," said Daniel Swisher, Chief Executive Officer and President of Sunesis. "The workforce reductions we're announcing today are difficult. We are deeply grateful for the dedication and contributions of the employees who will be leaving Sunesis and wish them the very best in all their future endeavours."
The company will be providing severance and career transition assistance to those employees directly affected by the restructuring. As a result of the restructuring plan, Sunesis estimates that it will record a one-time restructuring charge in the third quarter of 2007 of between approximately $1.0-1.2 million for personnel costs and approximately $0.5-0.8 million for facilities-related and other costs. Sunesis estimates that the total amount of the restructuring charge will be between $1.5-2.0 million. The cash portion of this restructuring charge will be approximately $1.0-1.2 million. As of June 30, 2007, Sunesis had cash, cash equivalents and marketable securities of $65.2 million. The company now anticipates that cash used in operating activities in 2007 will be less than $35 million, compared to original guidance estimates of approximately $40 million. Sunesis expects its 2008 cash used in operating activities to be at or below its 2007 level.
Sunesis is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics for oncology and other serious diseases.