TORONTO, Jan 26 (Reuters) - Procyon Biopharma Inc. said on Wednesday it will close three
labs and cut its workforce to reduce its burn rate after
disappointing trial results from its lead product Fibrostat to
It said 14 out of its 42 employees would lose their jobs, mainly
in basic research and administrative support. It alsoforecasts a
burn rate of about C$850,000 per month for 2005.
Last week, Montreal-based Procyon said Fibrostat failed to meet
targets in a phase IIb study, causing its shares to lose nearly
half their value.
Procyon said it will still focus on developing Fibrostat as well
as its two other main experimental drugs, PCK3145 to treat
advanced metastatic prostate cancer and PPL-100 to treat
The company said the restructuring will allow it to continue
operations for the next 18 months without impacting the three
main development programs.