Arena Pharmaceuticals Reduces Workforce by 73%By
Arena Pharmaceuticals, a biopharmaceutical company in San Diego, California, is shifting its priorities to focus on the development of its proprietary clinical-stage pipeline and is cutting costs by reducing its US workforce by approximately 100 employees, or 73%, by August 31, 2016. The workforce reduction will mainly be in the areas of research, manufacturing, and general and administrative.
Arena estimates that this move will reduce annualized cash expenditures for personnel by approximately $17 million and related other operating expenses by $6 million to $8 million. The company expects to incur restructuring charges in the second quarter of 2016 of approximately $6.1 million, primarily in cash expenditures, in connection with one-time employee termination costs. Arena also plans to implement additional cost-control measures to further reduce expenditures, which include reductions at its Swiss manufacturing facility.
Arena is currently directing its activities and resources primarily on advancing its proprietary clinical programs and supporting its collaborations. Its proprietary clinical programs include: etrasimod, a next generation, highly specific sphingosine 1-phosphate subtype 1 (S1P1) receptor for ulcerative colitis; APD371, an agonist of the cannabinoid-2 receptor, for pain indications; and ralinepag, an agonist of the prostacyclin receptor for pulmonary arterial hypertension.
Meanwhile, the collaborations that Arena is currently focusing on includes those with Eisai for weight management, Axovant Sciences for central nervous system disorders, Ildong Pharmaceuticals for thrombotic diseases, and Boehringer Ingelheim International for psychiatric diseases.
Source: Arena Pharmaceuticals