Cypress Bioscience in San Diego, California announced today several cost-cutting measures including a sharp reduction in staff. The steps announced will end a co-promotion agreement with Forest Laboratories, and close the company’s personalized testing services.
The drug development company discontinued an agreement with Forest Laboratories to co-promote Savella, its drug for fibromyalgia, a disorder causing pain in joints, muscles and other soft tissues. However, Cypress Bioscience will receive a $2 million payment from Forest Laboratories, and left open the possibility of future joint ventures.
The company will also discontinue or sell its personalized testing services in the field of rheumatology that provide physicians with information to help manage and optimize their patients’ care. Cypress Biosciences expects to cut its operating costs by about $10 million as a result, but expects to take $4.5 million in charges as well.
This restructuring will mean a staff reduction of 123 Cypress Bioscience employees, or 86 percent of its workforce. The layoff will take effect on 6 October 2010.
Hat tip: Fierce Biotech
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