Idenix Pharmaceuticals Restructures to Concentrate Efforts on HCV and HIV Programs
September 28 2007 - 9:00AM
PR Newswire (US)
CAMBRIDGE, Mass., Sept. 28 /PRNewswire-FirstCall/ -- Idenix
Pharmaceuticals, Inc. (NASDAQ:IDIX), a biopharmaceutical company
engaged in the discovery and development of drugs for the treatment
of human viral diseases, today announced a strategic restructuring.
As part of the restructuring, Idenix has amended the collaboration
agreement with Novartis Pharma AG related to Tyzeka(R)/Sebivo(R).
Per the amended agreement, Idenix will discontinue all development,
manufacturing and commercial activities for Tyzeka/Sebivo. Novartis
will continue these activities and have full responsibility for
ongoing and future clinical trials and regulatory filings related
to Tyzeka/Sebivo. Additionally, Idenix will receive a royalty on
worldwide product sales. As a result of these changes, Idenix is
reducing its workforce by approximately 100 positions, the majority
of which support the development and commercialization of
Tyzeka/Sebivo in the United States and Europe. Following this
reduction, Idenix will have approximately 200 employees at the
company. The company anticipates that this action will reduce its
cash burn rate by between 40 percent and 50 percent. "This has been
a challenging time in the evolution of our company and we have
re-evaluated our strategic plan and our organizational structure,"
said Jean-Pierre Sommadossi, Ph.D., chairman and chief executive
officer of Idenix. "We made a strategic decision to focus all of
our resources on our hepatitis C and HIV/AIDS discovery and
development programs; as such, we have discontinued the development
of valtorcitabine for the treatment of hepatitis B and have changed
our agreement for Tyzeka/Sebivo to a royalty stream arrangement.
These decisions will enable us to concentrate on what we believe is
most critical to our future success -- building and advancing our
pipeline." Idenix currently has a non-nucleoside reverse
transcriptase inhibitor (NNRTI), IDX899, for the treatment of HIV-1
that is being evaluated in phase I/II clinical testing. The company
also has a comprehensive HCV discovery effort, comprised of a
next-generation nucleoside polymerase inhibitor program, including
IDX102 and IDX184, which are currently being evaluated in advanced
preclinical testing, and HCV non-nucleoside polymerase inhibitor
and HCV protease inhibitor programs. As a result of this
restructuring, Idenix will incur between $5 million and $10 million
in charges, primarily associated with one-time employee severance
benefits and the write-off of certain assets. The company continues
to expect to end 2007 with between $100 million and $110 million of
cash, cash equivalents and marketable securities. Idenix estimates
that this restructuring will result in savings of $40 million to
$45 million on an annual basis. "We have taken the steps necessary
to streamline our organization and significantly reduce our
expenses, while continuing to maintain the strength of our balance
sheet," said Ronald Renaud, Jr., chief financial officer of Idenix.
"We believe that we are now well-positioned to fund the advancement
of our HIV and HCV discovery and development programs through
2009." About Idenix/Novartis Collaboration Idenix and Novartis
Pharma AG established a collaboration in May 2003, at which point
Novartis became a majority shareholder in Idenix. Currently,
Novartis owns 56% of Idenix and has first right of refusal to
Idenix's pipeline. About Idenix Idenix Pharmaceuticals, Inc.,
headquartered in Cambridge, Massachusetts, is a biopharmaceutical
company engaged in the discovery and development of drugs for the
treatment of human viral and other infectious diseases. Idenix's
current focus is on the treatment of infections caused by hepatitis
C virus and HIV. For further information about Idenix, please refer
to http://www.idenix.com/. Forward-looking Statements This press
release contains "forward-looking statements" within the meaning of
The Private Securities Litigation Reform Act of 1995. Such forward-
looking statements can be identified by the use of forward-looking
terminology such as "will," "to be," "expect," "anticipates,"
"advance," "believe," or similar expressions and implied statements
with respect to Idenix's expected cash position at the end of 2009;
duration of its funding abilities based on such cash position;
savings as a result of the restructuring; costs and expenses in
connection with the restructuring; and its expectations with
respect to its clinical development programs, including its HCV and
HIV/AIDS programs. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any future results,
performances or achievements expressed or implied by such
statements. In particular, management's expectations could be
affected by unexpected regulatory actions or delays; uncertainties
relating to, or unsuccessful results of, clinical trials, including
additional data relating to ongoing clinical trials evaluating its
product candidates; the company's ability to obtain additional
funding required to conduct its research and development
activities; the company's dependence on its collaboration with
Novartis Pharma AG; changes in the company's business plan or
objectives; the ability of the company to attract and retain
qualified personnel; competition in general; the company's ability
to obtain, maintain and enforce patent and other intellectual
property protection for its other product candidates and its
discoveries; and the company's unexpected use of cash. These and
other risks which may impact management's expectations are
described in greater detail under the caption "Risk Factors" in the
company's annual report on Form 10-K for the year ended December
31, 2006 and the Quarterly Report on Form 10-Q for the quarter
ended June 30, 2007, each as filed with the Securities and Exchange
Commission (SEC) and other filings that the company makes with the
SEC. All forward-looking statements reflect the company's
expectations only as of the date of this release and should not be
relied upon as reflecting the company's views, expectations or
beliefs at any date subsequent to the date of this release. Idenix
anticipates that subsequent events and developments may cause these
views, expectations and beliefs to change. However, while Idenix
may elect to update these forward-looking statements at some point
in the future, it specifically disclaims any obligation to do so.
Idenix Pharmaceuticals' Contacts: Media: Teri Dahlman (617)
995-9905 Investors: Amy Sullivan (617) 995-9838 DATASOURCE: Idenix
Pharmaceuticals, Inc. CONTACT: Media: Teri Dahlman,
+1-617-995-9905, or Investors: Amy Sullivan, +1-617-995-9838, both
of Idenix Pharmaceuticals, Inc. Web site: http://www.idenix.com/
Copyright
(MM) (NASDAQ:IDIX)
Historical Stock Chart
From Sep 2024 to Oct 2024
(MM) (NASDAQ:IDIX)
Historical Stock Chart
From Oct 2023 to Oct 2024