Significant reorganisation for Chelsea Therapeutics
pharmafile | July 11, 2012 | News story | Research and Development, Sales and Marketing | Chelsea Therapeutics, Northera, biopharma, biotech
Biopharma development firm Chelsea Therapeutics has announced a major corporate reorganisation.
The move includes a significant reduction in headcount, the departure of the founder and chief executive and plans to explore strategic options for the company.
The firm’s hypertension drug Northera was rejected by the FDA in March this year, and the firm is hoping additional trial data from its 306B study will be enough to sway regulators next time around.
It reported a net loss for the quarter ending 31 March of $15.6 million versus a net loss of $13.9 million for the comparable period in 2011.
Chelsea Therapeutics acquires and develops products for the treatment diseases that include the central nervous system, rheumatoid arthritis, psoriasis and other inflammatory diseases.
The reduction in overheads is expected to be completed in the third quarter of 2012, and see salary costs cut by at least $3.5 million on an annualised basis, excluding any one-time restructuring charges.
Simon Pedder, founder, president and chief executive has resigned with immediate effect.
Pedder will continue to serve in an advisory capacity, as the board begin evaluating candidates to succeed him as chief executive. Joseph Oliveto, who has been the company’s VP of operations since June 2008, has been appointed interim president and chief executive until a permanent chief executive is appointed.
Keith Schmidt, VP, Marketing and Sales, will also be leaving the company, but will remain available in an advisory capacity.
At the board level, Kevan Clemens has stepped down as chairman and remains a director, with director Michael Weiser assuming the role of chairman.
Weiser said: “Chelsea Therapeutics has faced tremendous challenges in moving Northera forward through the regulatory process, making these difficult decisions necessary to ensure stockholder value is preserved in the short-term and can be built over the long-term.
“The board plans to explore and evaluate all available strategic options to determine the best path forward in the long-term strategic interests of the company and its stockholders. We would like to thank those employees leaving the company for their service.”
Brett Wells
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