PRINCETON, N.J., Aug. 5, 2008 (PRIME NEWSWIRE) -- Pharmacopeia (Nasdaq:PCOP), an innovator in the discovery and development of novel small molecule therapeutics, has implemented the restructuring noted in its recent quarterly earnings release and conference call. This effort includes an immediate workforce reduction of approximately 40 percent through termination of positions. In May 2008, Pharmacopeia reduced its workforce by approximately 15 percent through attrition and termination of positions. With these two reductions, the company will have reduced its workforce in excess of 50 percent from previous levels. The company will continue to fulfill its contractual commitments to its corporate partners.
"This decision is extremely difficult but necessary as it will allow us to better focus on our strategic initiatives," said Joseph A. Mollica, Ph.D., Chairman of the Board of Directors and Interim President and Chief Executive Officer of Pharmacopeia. "We are grateful to our talented staff who have helped the company meet recent milestones."
As a result of its reductions in operating expenditures, Pharmacopeia expects the cash burn for the quarter ending December 31, 2008 to be approximately $10 million, exclusive of severance related costs. The company expects its quarterly burn to be less than $10 million in 2009.
Pharmacopeia plans to begin a Phase 2 clinical trial for PS433540, focusing on the indication of diabetic nephropathy. The company is also considering opportunities to partner the development of PS433540 for various indications and is evaluating various strategic initiatives intended to further the development of the company's business and enhance shareholder value.
In the third quarter of 2008, Pharmacopeia expects to record a charge of approximately $3 million in connection with the severance provided to employees directly affected by the latest reduction in staffing.
ABOUT PHARMACOPEIA
Pharmacopeia is a clinical development stage biopharmaceutical company dedicated to discovering and developing novel small molecule therapeutics to address significant medical needs. The company has a broad portfolio of clinical and preclinical candidates under development internally or by partners including nine clinical compounds in Phase 2 or Phase 1 development addressing multiple indications including diabetic nephropathy, hypertension, muscle wasting, inflammation and respiratory disease. The company is leveraging its fully integrated drug discovery platform to sustain the growth of its development pipeline. Pharmacopeia has established strategic alliances with major pharmaceutical and biotechnology companies, including Bristol-Myers Squibb, Celgene, Cephalon, GlaxoSmithKline, Schering-Plough, and Wyeth Pharmaceuticals.
