STORY UPDATE
VANCOUVER—May 28, 2007—To stem some financial difficulties in which it has found itself, Inflazyme Pharmaceuticals announced it has raised more than CN$600,000 through the sale of research equipment, relying on the help of online auctioneer Advanced Asset Services.
VANCOUVER—Canadian biotechnology company Inflazyme Pharmaceuticals announced it has undertaken a corporate restructuring that will see the company try to reduce expenditures. First on the list is a 70% reduction in the company's staff. The news comes as a result of the recent Phase IIb CAPSICS study that showed a surprisingly large placebo response.
"We are very disappointed to be letting go our employees, most of whom have been with Inflazyme for several years and all of whom have made significant contributions to our company, our technology and programs," said Dr. Kevin Mullane, company president and CEO. "We greatly appreciate our staff for their dedication, commitment and hard work. This is a necessary action in light of the disappointing results from the Phase IIb asthma trial, our lead program."
The costs associated with the restructuring are pegged at CAD$600,000. The company hopes to reduce its monthly burn to $400,000.
