-- Focuses Business Model on Technology Platform --
CAMBRIDGE, Mass., Nov 20, 2008 (BUSINESS WIRE) -- CombinatoRx, Incorporated (NASDAQ: CRXX) today announced a further
restructuring, effective immediately, to focus on the core strength of
the company: identifying novel product candidates based on unexpected
biological synergies. This restructuring will include a planned further
reduction of the Company's Cambridge workforce by approximately 30
employees, bringing the total workforce reduction to approximately 65%.
These measures should allow the company to operate without additional
equity financing for at least four more years.
"Our technology is uniquely capable of delivering important insights
into how multiple drugs interacting with multiple targets affect the
complex biology of human disease," commented Alexis Borisy, President
and CEO of CombinatoRx. "We have shown that our high throughput
combination screening technology is a very effective tool for defining
clinical candidates with novel properties, and that the effects observed in
vitro have also demonstrated clinical results."
Refocusing the CombinatoRx Business Model
Focusing efforts on core strengths
Identifying novel product candidates with unexpected biological
synergies using our unique combination high throughput screening
Securing valuable intellectual property rights on synergies of
Discovering interesting new biology and mechanisms that can be
accessed through new chemical entities (NCEs).
Remaining committed to our existing drug discovery collaborations
in areas such as Duchenne Muscular Dystrophy, Cystic Fibrosis,
Partnering at both the discovery and product development stage, as
well as partnering existing product assets.
Current clinical and late preclinical product assets
Synavive(TM): analyses continue to suggest that Synavive may have
commercial potential and we are engaged in multiple partnership
CRx-170: safety data from COMET-1 trial of Synavive reinforces
potential value of CRx-170 in neuropathic/inflammatory pain.
CRx-401: an interim analysis on the first 50 subjects enrolled in
the CRx-401 phase 2 clinical study in Type 2 diabetes indicates
that the trial is unlikely to detect a treatment advantage of the
CRx-401 combination of bezafibrate and diflunisal over bezafibrate
alone. Enrollment in the trial is complete with approximately 110
subjects. A full analysis of the data, including genomic markers,
will be available in 2009.
CRx-197: a phase 2a trial in subjects with plaque psoriasis is
fully enrolled and should be completed by the end of the year with
data available in Q1 2009.
CRx-191: has shown statistically significant combination vs. parts
activity in a phase 2a clinical trial, and remains a candidate for
Multiple presentations of preclinical data for our B-cell
malignancy programs at upcoming American Society of Hematology
(ASH) annual meeting in December.
Current cash reserves to fund operations without additional equity
financing for at least four more years.
Approximately 55 employees will remain after the restructuring,
focused primarily on research activities and partnering product
Planning to consolidate Cambridge facility.
Ongoing operating cash burn reduced to between $5-10 million
annually, providing financial viability and strategic flexibility.
Increasing 2008 restructuring charge to between $3.2 and $4.0
million, to be recognized in the fourth quarter of 2008.
CombinatoRx, Incorporated (CRXX) is pioneering the new field of
synergistic combination pharmaceuticals. Going beyond traditional
combinations, CombinatoRx creates product candidates with novel
mechanisms of action striking at the biological complexities of human
disease. These candidates are generated through the CombinatoRx
proprietary drug discovery technology which provides a renewable and
previously untapped source of novel drug candidates. The Company was
founded in 2000 and is located in Cambridge, Massachusetts. To learn
more about CombinatoRx, please visit www.combinatorx.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
concerning CombinatoRx, its expected business model and planned uses of
capital, its drug discovery technology, its product candidates and their
clinical or commercial potential, its partnering and business plans for
its product candidates and technology platform and its financial
condition, including anticipated charges, savings and cost reductions
from its restructuring and its long-term cash position. These
forward-looking statements about future expectations, plans and
prospects of CombinatoRx involve significant risks, uncertainties and
assumptions, including risks related to the unproven nature of the
CombinatoRx drug discovery technology, the Company's inability to obtain
new collaboration partners even when discussions may be ongoing or to
otherwise obtain additional funding needed for further research and
development of its product candidates, the Company's inability to
realize anticipated or further cost reductions following the
restructuring, and those other risks that can be found in the "Risk
Factors" section of the CombinatoRx Annual Report on Form 10-K on file
with the Securities and Exchange Commission and the other reports that
CombinatoRx periodically files with the Securities and Exchange
Commission. Actual results may differ materially from those CombinatoRx
contemplated by these forward-looking statements. These forward looking
statements reflect management's current views and CombinatoRx does not
undertake to update any of these forward-looking statements to reflect a
change in its views or events or circumstances that occur after the date
of this release.
(c) 2008 CombinatoRx, Incorporated. All rights reserved.
SOURCE: CombinatoRx, Incorporated
Robert Forrester, 617-301-7100
Executive Vice President, Chief Financial Officer
Gina Nugent, 617-301-7099
VP, Corporate Communications and IR