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news.Canadian drug development company Akela Pharma has announced that it will be implementing measures to cut costs in order to preserve cash for its continued operations.
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The reduction in costs is targeted at Akela’s development programs, as well as its service business, PharmaForm. Akela has initiated the Phase III clinical trials in its lead program, Fentanyl Taifun, in fourth quarter of 2008, and expects to continue the program with focused scope.
Having completed a successful Phase IIa study of its growth hormone releasing hormone product, as well as a regulatory advice process with the FDA, the company is pursuing out-licensing of the product for further development.
The measures undertaken are necessary to conserve cash and allow sufficient time for the company to continue its efforts in financing and M&A activities. The company’s pharmaceutical services business, PharmaForm, remains an important asset of Akela going forward. PharmaForm is a wholly owned subsidiary of Akela.
According to the company, the cost reduction measures are expected to improve profitability of PharmaForm with immediate effect, and will not affect PharmaForm’s ability to provide services to its strong mix of pharmaceutical clients and partners.
Akela Pharma is a drug development company with its lead product, Fentanyl Taifun. Akela’s pipeline product includes a growth hormone releasing hormone, which said to be useful in frailty and wasting in chronic renal disease.