CombinatoRx makes further cuts following Phase II failure
This article was originally published in Scrip
CombinatoRx is to reduce its workforce by a further 30 employees after its lead product Synavive (CRx-102) failed to reach its Phase II primary endpoint last month, sending its stock plummeting by 77%. The company has now reduced its workforce by around 65%, having initially announced a 45% reduction of its Cambridge, Massachusetts, workforce earlier this month. Around 55 employees will remain after the restructuring and will primarily be focused on research activities and partnering assets. CombinatoRx expects to incur restructuring charges of $3.2-4 million in the fourth quarter of this year, but expects its annual cash burn to fall by $5-10 million. The measures should allow it to operate without additional equity financing for at least four more years, CombinatoRx said. The company still believes that Synavive may have commercial potential and is currently engaged in partnership conversations.