After a comprehensive review of the company’s development portfolio and external marketing conditions, the board of Directors and management of Genaera Corporation (Nasdaq: GENR) decided that it is in the company’s best interest to terminate the EVIZON™ (squalamine lactate) clinical development program in wet age-related macular degeneration (AMD) and instead focus its resources on the development of trodusquemine (MSI-1436) for the treatment of obesity.
As a result of such a shift in decision, Genaera will reduce its workforce by approximately 30 percent and has engaged Banc of America Securities LLC as its financial advisor to assist the Company in its review of strategic alternatives.
According to Zola P. Horovitz, Ph.D., lead director of the Board:
"This restructuring is a fundamental shift in direction for Genaera but represents the best match of our development programs to the new realities of the marketplace. By re-focusing resources from the EVIZON development program, Genaera has the opportunity to bring trodusquemine forward and address a significant market opportunity in the treatment of obesity."
The Phase I clinical study of trodusquemine is expected in the first half of 2007.
Discovered at Genaera, Trodusquemine (MSI-1436) is a centrally acting appetite-suppressant which has been shown to cause weight loss and normalize both fasting blood glucose and blood cholesterol levels in obese animal models.
Read the full press release at Genaera.
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