NPSP » Topics » New Business Plan and Expense Reductions

This excerpt taken from the NPSP 8-K filed Mar 14, 2007.

New Business Plan and Expense Reductions

NPS is taking the following actions to support the development of its late-stage products and create sustainable long-term value for patients and shareholders:

 

   

reducing cash burn from $113 million in 2006 to approximately $85 to $95 million in 2007 (including restructuring and non-recurring expenses) and $35 to $45 million in 2008;

 

   

reducing current staff from 196 to 35 employees by the end of 2007;

 

   

closing facilities in Salt Lake City and Toronto and consolidating operations in New Jersey;

 

   

executing drug development activities through contract research organizations and outsourcing certain discovery and general and administrative activities;

 

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seeking financial or commercial partners to support the full development of our Phase 3 products; and

 

   

focusing discovery activities on the metabotropic glutamate receptor program.

Dr. Coles commented, “I regret that these actions will result in the loss of employment for many of our colleagues whose contributions are reflected in the company’s enviable record of success in drug discovery. This includes two approved products, Sensipar and Preotact, and several promising drug candidates being developed in partnership with some of the world’s leading pharmaceutical companies. Ultimately, we believe this new plan is a prudent way for us to continue to create important new medicines for patients and value for shareholders.”

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