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Reuters New Media
Procyon cuts jobs,labs to focus on late-stage drugs

January 26, 2005
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 treat scars.

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 HIV/AIDS.

The company said the restructuring will allow it to continue operations for the next 18 months without impacting the three main development programs.

($1=$1.23 Canadian)