Founded in 2000, CombinatoRx, Inc. is a biopharmaceutical company that engages in the development of synergistic combinations of approved drugs. The company seeks to go beyond traditional combinations in order to create product candidates whose novel mechanisms of action will strike at the biological complexities of human disease. The company currently has a portfolio of seven clinical candidates that target multiple diseases like immuno-inflammatory diseases, chronic pain, topical dermatoses, metabolic disease and oncology. Additionally, CombinatoRx has a broad preclinical pipeline including neurodegenerative and infectious disease programs. The company currently does not have any marketed candidates and generates revenues through its research and collaboration agreements. Grants received from the National Institutes of Allergy and Infectious Disease (NIAID) and the Singapore Economic Development Board also contribute to revenues. CombinatoRx has research and development collaboration agreements with the Spinal Muscular Atrophy Foundation Accelerate Brain Cancer Cure, Inc. Science Applications International Corporation Angiotech Pharmaceuticals, Inc. CHDI, Inc. National Institutes of Health Cystic Fibrosis Foundation Therapeutics Incorporated HenKan Pharmaceutical Company and Fovea Pharmaceuticals SA. These collaborations helped CombinatoRx generate $13.3 million in revenues in 2006. Based in Boston, Massachusetts, CombinatoRx employs approximately 144 professionals.
In November 2008, CombinatoRx laid off 20% of its workforce due to deteriorating market conditions. The layoffs were the second round of restructuring in under a month. In total, 82 people (65% of the work force) was laid off in November. The company expects the restructuring to reduce its operating costs by $5-10 million annually, allowing the company to weather the current economic downtown without further tapping into equity markets.
CombinatoRx announced its first restructuring plan earlier this month after reporting a Q3 loss of $15.6 million on $3.5 million in revenue. The results were only a marginal improvement over results from a year earlier, with $3 million in revenue.