>>Encysive Pharmaceuticals Appoints New Chief Executive and Announces Restructuring of Company Operations
Monday June 25, 4:54 pm ET
HOUSTON, June 25, 2007 (PRIME NEWSWIRE) -- Encysive Pharmaceuticals Inc. (NasdaqGM:ENCY - News) today announced that George W. Cole has been promoted to the position of President and Chief Executive Officer, replacing Dr. Bruce D. Given in those roles, and has also been elected as a member of the Board of Directors.
Mr. Cole has been Encysive's Chief Operating Officer since November of 2005. Prior to joining the Company, Mr. Cole served as President of Altana Pharma U.S. and as the chairman of Altana Pharma's global operating committee. Mr. Cole previously held management and sales and marketing positions at Searle, Adria Labs and Bristol-Myers Squibb.
``We are pleased to have George assume the roles of President and CEO,'' said John M. Pietruski, Chairman of the Board. ``George has been intimately involved in the business, including the building of our European and Canadian teams. His knowledge of the business and his leadership skills should serve us well as the Company considers its strategic options, while remaining focused on its most valuable assets.''
``I want to thank Bruce for his many contributions to the Company,'' added Mr. Pietruski. ``Bruce was key to the clinical development of Thelin(tm) and to our approvals in Europe, Australia and Canada.''
The Company also announced that it is implementing a strategic restructuring in order to focus its resources on its most promising assets. As a result, Encysive will reduce its U.S. workforce by approximately 70 percent, to about 65 people. Approximately 150 employees, including the U.S. sales force, will be terminated immediately, with a smaller group leaving in the coming months. The Company also eliminated the position of Chief Operating Officer.
Encysive is providing cash severance payments to employees directly affected by the workforce reduction. The Company estimates that it will record approximately $15 million in restructuring and severance costs in 2007. Encysive expects to end the second quarter of this year with approximately $58 million in cash. The Company also expects that, as a result of the strategic restructuring, its ongoing quarterly operating expenses will be approximately $20 million in Q3 2007 and approximately $15 million in Q4 2007.
STRIDE-3, the Company's ongoing study of Thelin(tm) in PAH, will be discontinued in the U.S. and Latin America.
Going forward, the Company will focus its resources on:
* Sales and marketing of Thelin(tm) in Europe, Canada and
Australia.
* Plans for advancing Thelin(tm) for PAH in the U.S. market.
* Continuing the clinical development of TBC3711, the Company's
second-generation endothelin antagonist. A Phase II dose
ranging study in resistant hypertension is currently underway.
In addition, there is an I.V. formulation of TBC3711 in
development for an undisclosed indication.
* Continuing the Phase II proof of concept study of oral Thelin(tm)
as a treatment for diastolic heart failure.
* Completing activities to maintain the value of its Chemokine
C-motif Receptor 9, (CCR9 receptor antagonist) and its two late
stage pre-clinical programs against an undisclosed target.
* Maintaining a scaled-back headquarters in the U.S. to accomplish
the above goals.<<
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No conference call, I see. I guess we wait until 2nd quarter results are announced to get color on the direction of the company. Such as what burn is expected to be, to get an idea of financing needs. Stock isn't doing much after hours. Was hoping for a bounce. Well, at least they were quick, as promised.
edit: ah, now the stock is responding, up 7% to over two bucks . . .
Cheers, Tuck |
