June 19 (Reuters) - Drugmaker Jazz Pharmaceuticals Inc (JAZZ.O) has put the development of three drugs in its pipeline on hold, in a bid to save cash as it seeks to resolve interest payment issues with its bond holders, a company spokesman said.
"The interest issue has been the biggest overhang for our company and we continue to be in discussions with our senior secured note-holders to try to resolve that," Executive Director of Corporate Development Willie Quinn told Reuters.
The Palo Alto, California-based company, which has yet to make profit, had failed to make its fourth-quarter interest payment on its $119.5 million senior secured notes.
"If we resolve the default situation, then being profitable is a great thing, but until we have settled our differences with the note-holders, profitability is a secondary consideration," Quinn said.
The company, which currently markets sleep disorder drug Xyrem and social anxiety disorder treatment Luvox CR, plans to continue the development of its experimental drug to treat fibromyalgia, a chronic pain syndrome.
The fibromyalgia drug is currently being studied in a second late-stage trial.
"We have three other assets in various stages of development, but until we are fully reinstated with our note-holders, and probably until we get profitable, the development for those programs is currently on hold," he said.
The three halted candidates were in development as treatments for epilepsy and bipolar disorder; to treat restless legs syndrome; and as a treatment for epilepsy in patients who continue to have seizures while on stable anti-epileptic regimens.
"We do not anticipate significant additional development progress on these programs unless, or until, we partner a program or otherwise obtain financing that we believe is sufficient to continue development," Quinn said.
However, given these actions, he said Jazz does not see the need for any reorganization in the near term.
"We have cut back a lot on development spending and the expense-base of the company is about where it needs to be for now." . |
