Neurocrine Biosciences cuts jobs
Shares of Neurocrine Biosciences, Inc. (Nasdaq: NBIX) are falling on news before the start of trading that the drug maker is laying off more than half of its workforce.
The San Diego, Calif.-based company, which develops drugs for the treatment of neurological and endocrine-related diseases, announced today that it will lay off about 130 employees as a part of its restructuring program to prioritize its research and development programs. The reduction will leave Neurocrine with about 120 employees.
“It is with great disappointment that we have to make this difficult decision that will have such an effect on so many of our employees and their families,” said president and CEO Gary Lyons in a statement. “However, in order to meet our goals on other high priority programs, we have to refocus our resources as quickly as possible.”
The downsizing comes in response to a letter received from the U.S. Food and Drug Administration on Thursday, asking that Neurocrine do additional study of its insomnia drug Indiplon.
Specifically, the FDA wants the company to test its drug on the elderly, compare it to a similar product already available on the marketplace and conduct a pre-clinical study to evaluate Indiplon during the third trimester of pregnancy.
“While we are disappointed in the FDA action, we will accept the FDA’s offer to discuss the applications via a meeting or telephone conference in order to clarify and determine the next steps required,” Lyons said in response.
That’s the second time the drug is being delayed. Neurocrine received a similar letter on May 15, 2006, asking it to conduct further analysis of data from clinical and pre-clinical trials of Indiplon.
The U.S. Department of Health and Human Services estimates that about 60 million people suffer from insomnia each year.
At 2:25 p.m. ET, shares of Neurocrine (NBIX) had shed $0.35, or 7%, to $4.90.
