Avanir said the decision would better enable it to execute its plan to pursue regulatory approval for the drug Zenvia used in the treatment of involuntary emotional expression disorder.
The restructuring plan has been implemented in order to reduce ongoing operational costs and account for the loss of revenue associated with the two research collaborations. The company said it is targeting to reduce its annual operating expenses to $20 million.
Avanir has agreed with AstraZeneca to end their research collaboration and license agreement on the Reverse Cholesterol Transport (RCT) enhancing compounds. According to the terms of the agreement, AstraZeneca will return the lead molecule and return or make available all related rights to Avanir.
Avanir anticipates that it will exit from the San Diego research facility later this year and move essential clinical development and support resources to its headquarters.
The company also said it is implementing other cost saving measures. Avanir has reported that Novartis is to assume all continuing development activities for their Macrophage Migration Inhibitor Factor program with plans to advance the lead candidate, AVP-28225 towards clinical development. Avanir will receive a milestone payment if the molecule reaches the next stage of development.
Separately, Avanir has received expressions of interest in certain company assets and is engaged in ongoing discussions with multiple parties regarding their potential sale.
Avanir commented that its current goal is to minimize shareholder dilution and obtain sufficient cash to fund all, or substantially all, of the operating expenses for the next two years.