Cytokinetics Announces Strategic Restructuring
Tue October 18, 2011 4:00 PM
PROVIDED BY:Marketwire
SOUTH SAN FRANCISCO, CA -- (MARKET WIRE) -- 10/18/11 -- Cytokinetics, Incorporated announced plans today to restructure the company's workforce and operations in connection with its commitment to focus resources primarily on the development of its later-stage development programs, CK-2017357 and omecamtiv mecarbil. As its first priority, the company intends to focus its resources on the partnering and advancement of CK-2017357, including the planning and initiation of a clinical trial in amyotrophic lateral sclerosis (ALS) patients that may potentially serve as a registration trial. Additionally, Cytokinetics plans to retain a smaller, but fully integrated, R&D organization focused to the advancement of its follow-on skeletal muscle troponin activator program and certain other research and development programs also directed to muscle biology.
"This strategic restructuring is a necessary step and consistent with our commitment to advance CK-2017357 in ALS towards potential registration and also to support our collaboration with Amgen for the development of omecamtiv mecarbil in heart failure. Alongside our continuing plans to seek a partnership for our skeletal muscle troponin activator program, we are also pursuing other sponsored research deals and remain confident that we are moving towards potential deals intended to permit us to maintain integrated R&D capabilities," stated Robert I. Blum, Cytokinetics' President and Chief Executive Officer. "It is extremely difficult to part ways with friends and colleagues who have devoted so extensively to our maturing company over the years. We want to express our deepest appreciation to them and their families. They have contributed importantly to Cytokinetics and we are grateful for their dedication as well as their insights, diligence and innovation which have propelled the company forward and challenged us to be our best."
With the changes announced today, Cytokinetics retains the functional abilities required to meet its obligations to its collaboration partner, Amgen, and under its grant from the National Institute of Neurological Disorders and Stroke. Furthermore, as the company is retaining key capabilities, it believes its ongoing and future business development activities will not be materially affected. If Cytokinetics cannot secure funding in connection with a partnership or from other sources for CK-2017357 and its follow-on skeletal muscle troponin activator compounds, the company may need to consider other options, including additional headcount reductions, to enable the further advancement of this program.
Realignment and Workforce Reductions:
Following the implementation of this restructuring program, Cytokinetics will have reduced its workforce to 83 people. The company is providing severance, employee benefit continuation and career transition assistance to the employees directly affected by the restructuring. Cytokinetics anticipates incurring restructuring charges of approximately $1.3 million in the fourth quarter of 2011, primarily associated with personnel-related termination costs which may increase later in the year, depending on potential facility-related charges and other write downs that have not yet been finalized.
The Company estimates its operating expenditures on a cash basis for the nine months of 2011 were approximately $36.0 to $37.0 million. As a result of today's restructuring and other recent expense reductions, Cytokinetics plans to provide further guidance on reduced cash operating expenses for 2011 on its third quarter conference call on October 27, 2011.
About Cytokinetics
Cytokinetics is a clinical-stage biopharmaceutical company focused on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Cytokinetics' lead drug candidate from its cardiac muscle contractility program, omecamtiv mecarbil (formerly CK-1827452), is in clinical development for the potential treatment of heart failure. Amgen Inc. holds an exclusive license worldwide (excluding Japan) to develop and commercialize omecamtiv mecarbil and related compounds, subject to Cytokinetics' specified development and commercialization participation rights. Cytokinetics is independently developing CK-2017357, a skeletal muscle activator, as a potential treatment for diseases and conditions associated with aging, muscle wasting or neuromuscular dysfunction. CK-2017357 is currently the subject of a Phase II clinical trials program and has been granted orphan-drug designation by the U.S. Food and Drug Administration for the potential treatment of amyotrophic lateral sclerosis (ALS), a debilitating disease of neuromuscular impairment in which CK-2017357 demonstrated potentially clinically relevant pharmacodynamic effects in a Phase IIa trial. Cytokinetics is also conducting research and non-clinical development of compounds that inhibit smooth muscle contractility and which may be useful as potential treatments for diseases and conditions associated with excessive smooth muscle contraction, such as bronchoconstriction associated with asthma and chronic obstructive pulmonary disorder (COPD). In addition, prior Cytokinetics' research generated three anti-cancer drug candidates that have progressed into clinical development: ispinesib, SB-743921 and GSK-923295. All of these drug candidates and potential drug candidates have arisen from Cytokinetics' research activities and are directed towards the cytoskeleton. The cytoskeleton is a complex biological infrastructure that plays a fundamental role within every human cell. Additional information about Cytokinetics can be obtained at www.cytokinetics.com. |
