This effort includes an immediate workforce reduction of approximately 15% through attrition and termination of positions as well as a decrease in other expenses through improved operational efficiencies and increased financial discipline. The company’s annual operating expenditures are expected to decrease by at least $10 million in 2009.
In the second quarter of 2008, Pharmacopeia expects to record a charge of approximately $800,000 in connection with the severance provided to employees directly affected by the reduction in staffing.
Joseph Mollica, chairman of the board of directors and CEO of Pharmacopeia, said: “We believe that, with the recent announcement of our positive Phase IIa results for PS433540 (DARA), it is the appropriate time to continue executing our plan to allocate a greater share of our resources towards our later-stage programs.”