The restructuring will enable Praecis to focus its resources on its most promising assets and programs and significantly reduce its cost structure.
Going forward, the company will focus its resources on continuing the clinical development of cancer and autoimmune disease treatment compound PPI-2458, and continuing to advance its Direct Select drug discovery technology.
The company will also, in collaboration with Schering AG, continue to seek approval of and successfully commercialize Plenaxis in the European Union and Schering AG’s other licensed territories.
However, the restructuring also involves Praecis discontinuing promotional activities related to Plenaxis and the sale of Plenaxis for new patients in the US, and suspending the ongoing clinical development of Apan for Alzheimer’s disease.
The company’s current 182-person headcount will also be reduced by about 60%, to around 75 permanent ongoing employees. Approximately 100 employees will be affected immediately by the workforce reduction, with a smaller group leaving over the upcoming months.
As part of the strategic restructuring, Praecis will also evaluate alternatives relative to its current headquarters and research building and relocation of its operations to a smaller facility.