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Biotech / Medical : Essential Therapeutics (ETRX) formerly Microcide (MCDE -- Ignore unavailable to you. Want to Upgrade?

To: sim1 who wrote (409)	3/4/2003 7:21:00 PM
From: SemiBull	Respond to of 415

Essential Therapeutics Announces Nasdaq Panel Hearing Date and Its Plans To Divest a Portion of Its California Operations Tuesday March 4, 6:41 pm ET WALTHAM, Mass., March 4 /PRNewswire-FirstCall/ -- Essential Therapeutics, Inc. (Nasdaq: ETRX - News) today announced that a Nasdaq Listing Qualification Panel hearing date has been set for March 20, 2003, and the Company described its plans to divest of a portion of its California operations. On January 31, 2003, the Company announced the receipt of a Nasdaq Staff determination letter indicating the Staff's decision to delist the Company's securities from The Nasdaq National Market due to the Company's failure to comply with the Nasdaq National Market System listing criteria which require the Company to maintain a minimum stockholders' equity of $10 million. The Company appealed the Staff's determination to the Nasdaq Listing Qualifications Panel, and the delisting of the Company's securities has been stayed pending the Panel hearing. The hearing has been set for March 20, 2003. The Company also announced that it has initiated discussions with an entity that has expressed interest in acquiring a portion of the Company's California operations, which may include, certain of the Company's California facilities, selected pre-clinical infectious disease programs and some of the Company's approximately 55 employees based in California. In the event that the Company is not able to secure a buyer for the California operations by March 31, 2003, the Company intends to phase out its California operations beginning on such date. The Company's plan calls for the elimination of approximately 42 positions as of March 31, 2003. Some of the remaining employees will assist with the shut-down of certain California facilities, while the remainder of the employees will be asked to continue with the Company until the completion of the Company's collaborative agreement with Fujisawa Pharmaceutical Co., Ltd. which is expected to conclude in the third quarter of 2003. The Company also announced that it will continue its pre-clinical proof-of-concept studies on a small molecule therapeutic for wound healing applications and that development of the Company's parenteral cephalosporin candidate, partnered with Johnson & Johnson Pharmaceutical Research & Development, LLC, which is in Phase 1 clinical trials will not be affected by the shut-down of the California operations. The Company will continue to evaluate its other programs. "We find ourselves in a situation where it is imperative that we focus the Company and its resources on those programs which offer the greatest opportunities to create commercial value," commented Mark Skaletsky, Essential Therapeutics Chairman and CEO. "While we are saddened by the circumstances that require us to divest of our California operations and eliminate certain positions and programs from the Company, we believe that the decision to do so is critical to ensure that this Company has the resources necessary to advance its wound healing program and to successfully in-license opportunities that we believe will offer the best opportunity to move Essential forward with the funds the Company has available." About Essential Therapeutics Essential Therapeutics is committed to the development of breakthrough biopharmaceutical products for the treatment of life-threatening diseases. Essential Therapeutics is dedicated to commercializing novel small molecule products addressing important unmet therapeutic needs. Additional information on Essential Therapeutics can be obtained at essentialtherapeutics.com. Statements contained herein that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements made by the Company. These factors include, but are not limited to, the Company's ability to meet and sustain compliance with all of the listing requirements of the Nasdaq National Market. For a discussion of other risks and uncertainties affecting Essential Therapeutics' business, see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2002. Actual results and timing of certain events could differ materially from those included in the forward-looking statements as a result of these or other factors. -------------------------------------------------------------------------------- Source: Essential Therapeutics