(Source: Business Wire)
Metabasis Therapeutics, Inc. (Nasdaq: MBRX) announced today a corporate restructuring that will reduce its workforce by approximately 85%, or 45 employees. The restructuring was necessitated by the Company's difficulty in raising sufficient capital from a financing or other sources, and is intended to further preserve cash and reduce ongoing operating expenses, providing the Board of Directors additional time to evaluate strategic alternatives. The seven remaining employees, primarily consisting of the current officers of the Company, will assist the Board of Directors in assessing and potentially implementing these strategic alternatives. However, in the event the Company is unable to raise capital in the near-term it may be forced to cease its operations entirely.
In addition, on May 21, 2009, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market, notifying the Company that it did not meet the minimum stockholders' equity requirement of $2.5 million required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). The Company's Form 10-Q for the period ended March 31, 2009 reported a stockholders' deficit of $4.0 million. Under this Listing Rule, the Company has 15 calendar days to submit a plan to regain compliance. If the Company submits the plan and it is accepted by Nasdaq, Nasdaq may grant an exception of up to 105 days from the date of this letter to permit the Company to regain compliance with the applicable listing requirements.
About Metabasis (www.mbasis.com):
Metabasis is a biopharmaceutical company committed to the discovery, development and commercialization of novel drugs for metabolic diseases using its proprietary technology and its knowledge of processes and pathways within the liver that are useful for liver-selective drug targeting and treatment of metabolic diseases. The Company has established a broad pipeline of product candidates and advanced discovery programs targeting large markets with significant unmet needs. The Company's product pipeline includes clinical-stage product candidates and advanced discovery programs for the treatment of metabolic diseases such as diabetes and hyperlipidemia, as well as product candidates and advanced discovery programs for the treatment of liver diseases such as hepatitis and primary liver cancer. All of the Company's product candidates were developed internally using its proprietary technology and know-how.
