NFLD in close race to FDA finish line with Polyheme lays off about 13% and reduces hours for the rest. Assuming the labor costs are linear [they probably aren't], They should be spending about 1.5M per month for salaries, expenses, etc... not sure if they save any money on real estate with the move. So, they should see a zero balance with the paycheck for the first week of May. Very close with the FDA PDUFA date of 30 April. There may be a few potential funding windows...
1. A unanimously favorable AC Vote could lead to investment funding.
2. Immediately after a favorable FDA License Approval, they might get funding from a partner [PFE or an Israeli medical company], Pepsi Cola [long story, they are on the BoD] or a license deal for Rest of World.
3. Despite the obvious linkage to Chicago and IL politicians, there seems no obvious way to get funding from DoD, who could certainly use PH in its far off conflicts.
4. Perhaps the FDA grants a license closer to the AC than the PDUFA date. That would provide a surprise pop in the share price.
This is just one example of several biotechs on Death Watch 2009.
graham
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phx.corporate-ir.net
Northfield Implements Measures to Preserve Cash
EVANSTON, Ill.--(BUSINESS WIRE)--Mar. 6, 2009-- Northfield Laboratories Inc. (Nasdaq: NFLD) announced today that it has implemented a number of measures to reduce its cash burn in order to preserve cash for ongoing operations. The Company is also continuing its efforts to seek additional financing.
The Company has eliminated 13 positions at its manufacturing facility in Mount. Prospect, Illinois, and has reduced hours for remaining staff. In addition, the Company is closing the corporate offices and relocating staff to the owned Mount Prospect facility to further reduce operating costs. Following the recent completion of FDA’s Pre-License Inspection of the manufacturing facility, the Company believes these actions can be taken and still maintain the capability to address manufacturing, regulatory and licensing issues. In addition, Northfield has today advised the City of Evanston, Illinois, the Village of Mount Prospect, Illinois and the Illinois Department of Commerce & Economic Opportunity that unless additional funding for operations is obtained, the Company plans to effectuate a “plant closing” under the Illinois Worker Adjustment and Retraining Notification Act (“Illinois WARN”) and applicable regulations, which may result in the termination of employees at its main office and plant facilities in 60 days, or approximately May 5, 2009.
At the end of the second fiscal quarter on November 30, 2008, Northfield had $10.1 million in cash and marketable securities. Based on the implementation of the measures described, Northfield believes it will have sufficient cash to continue operations until April 30, 2009.
Northfield has a target FDA review date of April 30, 2009 for its Biologics License Application for its human hemoglobin-based oxygen carrier, PolyHeme®.
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