Arpida To Cut Costs, Staff As It Tries To Rekindle Iclaprim
Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Swiss biotech company Arpida Ltd (ARPN.EB) said Thursday it will put all its resources into revitalizing the chances of its key pipeline drug, Iclaprim, after the U.S. Food and Drug Administration last week rejected it.
The company, which aside from Iclaprim has very few irons in the fire, said it would cut costs significantly - including laying off up to 60 people - and will now thoroughly analyze the situation with external experts to determine the future development of Iclaprim.
The drug was filed as a treatment for complicated skin infections, and meant to deal with bacteria which have built up resistance to conventional antibiotics.
An FDA advisory panel review of Iclaprim published last week said it had lower cure rates than rival drug Zyvox, from Pfizer Inc. (PFE). The regulator proceeded to red-stamp the application.
Chief Executive Juergen Raths said Thursday the advisory board's recommendation was "totally unexpected, because we are still convinced that Iclaprim offers a valuable therapeutic asset for the treatment of complicated skin and skin structure infections, especially where resistant bacteria...are involved."
"We will use the FDA's feedback as well as further clinical advice and expertise in our development decisions."
Shares of Arpida lost most their value after the FDA ruling. Despite ending Thursday 11% higher at CHF0.90, they are still 96% lower for the year-to-date.
Analysts have questioned the viability of the company without an approval for Iclaprim, and flagged possible financing issues.
Company Web Site: http://www.arpida.com
-By Hans Schoemaker, Dow Jones Newswires; +41-43-4438045; hans.schoemaker@dowjones.com
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(END) Dow Jones Newswires
November 27, 2008 14:22 ET (19:22 GMT)
Publié le 27 novembre 2008 Copyright © 2008 Dowjones
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