March has been a busy month for contrast agent developer Molecular Biosystems. Just weeks after Palatin Technologies told the San Diego-based firm it was bowing out of a planned merger, MBI has announced a dramatic restructuring. From now on, MBI says it will focus solely on activities related to its Optison cardiac ultrasound agent.
MBI had also been developing Oralex, an oral ultrasound agent, and MB840, a liver CT contrast agent. The restructuring was a necessary step in reducing the company's expenses and conserving its cash, according to MBI president and CEO Bobba Venkatadri. Eliminating the MB840 development program will reduce the firm's annual expenditures by approximately $5 million, according to MBI.
As of December 31, 1999, MBI had cash and cash equivalents of $15.8 million, down from $21.5 million on March 31, 1999. Total assets were $25 million, down from $31.8 million on March 31, 1999.
As part of the restructuring, 33 of MBI's 56 employees will be laid off. Further staff reductions will occur as a result of MBI's continued outsourcing of manufacturing operations to its partner, Mallinckrodt, according to MBI.
MBI has been a pioneer in ultrasound contrast media, introducing Albunex and Optison, the first agents approved by the Food and Drug Administration. Despite these achievements, however, the ultrasound contrast market has not lived up to expectations, and the firm has suffered years of steep losses.
Still, MBI believes there's cause for optimism. In its fiscal third quarter (end-December 31), the firm reported a 43% increase in Optison sales, compared with the same period in 1998.
MBI also announced earlier this week that its Asian distribution partner, Chugai Pharmaceuticals, has initiated clinical trials in Japan for radiology applications for Optison. Tokyo-based Chugai began clinical trials of the agent, known there as FS069, in December for use in assessing left ventricular opacification and myocardial perfusion.
By Erik L. RidleyAuntMinnie.com staff writer
March 30, 2000
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