Adolor Corporation Announces Restructuring
July 15 2010 - 4:01PM
Business Wire
Adolor Corporation (NasdaqGM: ADLR) today announced a reduction
in force of 30 employees, or nearly 30% of its workforce, as well
as other cost saving initiatives.
“This obviously is a difficult, but necessary, decision for the
Company, and I want to thank the affected employees for their
efforts on behalf of Adolor,” said Michael R. Dougherty, President
and Chief Executive Officer.
As a result of the restructuring and other cost savings
initiatives, the Company expects to significantly reduce its
annualized cash burn. Cash and investments at June 30, 2010 were
approximately $62.3 million, which the Company believes will fund
currently anticipated operating activities through 2012. During the
third quarter of 2010, the Company expects to record a cash
restructuring charge of approximately $2.0 million, primarily
related to severance and related expenses.
“Our restructuring provides Adolor with a fiscally responsible
plan to fund its operations for more than two years without any
near-term need to raise capital,” Mr. Dougherty continued. “We will
remain focused on our two primary business objectives: the
continued growth of the ENTEREG brand and the advancement of our
opioid bowel dysfunction (OBD) clinical development program through
proof-of-concept studies in 2011.”
Separately, the Company announced that net product sales of
ENTEREG for the three months ended June 30, 2010 were $6.3 million,
compared to $2.4 million in the second quarter of 2009. With this,
first half 2010 net product sales are tracking slightly below the
lower end of the Company’s internal net sales projections for this
period, and the Company does not expect to be providing net sales
guidance for ENTEREG for the remainder of 2010.
Complete financial results for the quarter ended June 30, 2010
will be released in late July.
About Adolor
Adolor Corporation is a biopharmaceutical company specializing
in the discovery, development and commercialization of novel
prescription pain management products.
Adolor’s first approved product in the United States is ENTEREG,
which is indicated to accelerate the time to upper and lower
gastrointestinal recovery following partial large or small bowel
resection surgery with primary anastomosis. ENTEREG is available
for short-term use in hospitals registered under the E.A.S.E.™
Program. For more information on ENTEREG, including its full
prescribing information, visit www.ENTEREG.com. In collaboration
with GSK, the Company launched ENTEREG in mid-2008.
The Company's research and development pipeline includes: two
novel delta opioid receptor agonists, one of which currently is in
mid-stage clinical development in collaboration with Pfizer Inc.
for neuropathic pain; two opioid receptor antagonists, ADL7445 and
ADL5945, entering development for chronic OBD; and several opioid
and non-opioid discovery programs.
For more information, visit www.adolor.com.
Forward-Looking Statements
This press release, and oral statements made with respect to
information contained in this release, may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements provide Adolor’s
current expectations or forecasts of future events. These may
include statements regarding market prospects for ENTEREG;
anticipated scientific progress on Adolor’s research programs;
development of potential pharmaceutical products, including the OBD
program and the timing and results of any clinical studies of our
compounds; interpretation of clinical results; prospects for
regulatory approvals; the anticipated savings resulted from the
restructuring, the amount of the restructuring charge to be
recorded and the period through which the Company has sufficient
cash to support operations; and other statements regarding matters
that are not historical facts. You may identify some of these
forward-looking statements by the use of words in the statements
such as “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe” or other words and terms of similar meaning or
that otherwise express contingencies, goals, targets or future
development. These statements are based upon management’s current
expectations and are subject to risks and uncertainties, known and
unknown, that could cause actual results and developments to differ
materially from those expressed or implied in such statements due
to general financial, economic, regulatory and political conditions
affecting the biotechnology and pharmaceutical industries, as well
as more specific risks and uncertainties facing Adolor such as
those set forth in its reports on Forms 8-K, 10-Q and 10-K
filed with the U.S. Securities and Exchange Commission. Adolor
urges you to carefully review and consider the disclosures found in
its filings which are available at www.sec.gov and from Adolor at
www.adolor.com. Given the uncertainties affecting pharmaceutical
companies such as Adolor, any or all of these forward-looking
statements may prove to be incorrect. Therefore, you should not
rely on any such factors or forward-looking statements. Adolor
undertakes no obligation to publicly update or revise the
statements made herein or the risk factors that may relate thereto
whether as a result of new information, future events, or
otherwise, except as may be required by law.
This press release is available on the website
http://www.adolor.com.
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