Forbes Medi-Tech plans to cut Canadian workforce

The re-focused pharmaceutical development program will concentrate on the FM-TP series of compounds targeting metabolic syndrome and its underlying disease states such as diabetes, the systemic inflammation that drives metabolic syndrome, and inflammatory lung disease.

Drug discovery and development efforts focused on the recently acquired FM-TP series of compounds will be undertaken at the company's new facility in San Diego, California.

Based on the results from the recently completed phase II trial, the company's immediate pharmaceutical objective is to out-license its cholesterol-lowering drug, FM-VP4.

With the identified cost-cutting measures, planned expenditures in research and development and anticipated revenue to be generated by the company's ingredient business, Forbes considers its working capital will be sufficient to finance operations through the second quarter of 2008 versus the end of 2007.

The company's restructuring will become effective March 1, 2007.