Ark Therapeutics to restructure
Will concentrate on core strengths while reducing risk
Specialist drug developer Ark Therapeutics is to restructure by reducing its headcount and fixed costs, which will cut by half its net monthly cash outlay.
The London and Finland-based firm says it will focus its resources on the development and licensing of its advanced gene technology platforms; progress its early stage product pipeline through r&d collaborations with industrial partners; and exploit revenue-generating opportunities for its proprietary technology systems, process development and scale-up capabilities and facilities based in Kuopio, Finland.
Ark will also concentrate its internal r&d resources on the proprietary VEGF-D programmes already in early clinical trials in refractory angina and peripheral vascular disease being developed with the AI Virtanen Institute in Finland. It will also focus on the Neuropilin-1 and Foetal Growth Restriction pre-clinical programmes being developed with University College London.
Ark anticipates that at least one of these projects will be partnered in 2011.
The firm will seek a partner to progress the development of Trinam and continue its efforts to out-license Cerepro.
Andrew Christie will step down as chairman and Iain Ross, who has been working with the board and chief executive Martyn Williams to re-structure the business, has agreed to take on the role of executive chairman. Christie will remain on the board until an independent non-executive director with product development experience is appointed.
Taking into account the one-off costs of the re-structure and the income generating initiatives already underway, including the sale of its woundcare business, the Ark directors say the company will have sufficient funds to support the business to 2013.
‘With a much reduced cash burn and a leaner, more focused operation, Ark is now better positioned to deliver shareholder value,’ said Williams.