As part of the restructuring, Metabasis will focus on the company’s product candidates, MB07811 for the treatment of hyperlipidemia and MB07803 for the treatment of type 2 diabetes, as well as on advancing its glucagon antagonist program.
Estimated charges of approximately $1.4 million will be recorded in the first quarter of 2009 in connection with one-time employee termination costs, including severance and other benefits.
Mark Erion, president, CEO of Metabasis, said: “While this type of action is always very difficult, we believe it is in the best interest of Metabasis stakeholders that we closely align our current resources with our strongest near-term opportunities for success. We continue to make progress toward recommending a glucagon antagonist for development and as such are optimistic that this program will result in a significant collaboration.
“We also expect to initiate efforts later this year to establish a strategic collaboration for MB07803, our second generation fructose-1,6-bisphosphatase inhibitor for type 2 diabetes.”