The reduction in costs is targeted to Akela's development programs, as well as its service business, PharmaForm. Akela has initiated the phase III clinical trials in its lead program, Fentanyl TAIFUN(R), in Q4 of 2008, and will continue the program with focused scope. Having completed a successful phase IIa study of its GHRH product, as well as a regulatory advice process with the FDA, the Company is pursuing out-licensing of the product for further development.
The measures undertaken are necessary to conserve cash and allow sufficient time for the Company to continue its efforts in financing and M&A activities. The Company's growing and profitable pharmaceutical services business, PharmaForm, remains an important asset of Akela going forward. PharmaForm is a wholly owned subsidiary of Akela, and had annual revenue of over $12 million USD in 2008. The cost reduction measures are expected to improve profitability of PharmaForm with immediate effect, and will not affect PharmaForm's ability to provide services to its strong mix of pharmaceutical clients and partners.
About Akela Pharma Inc.:
Akela Pharma is a drug development company with its lead product, Fentanyl TAIFUN(R), being developed for the treatment of breakthrough cancer pain. Fentanyl TAIFUN(R) is a fast-acting fentanyl formulation delivered using the Company's TAIFUN(R) multi-dose dry powder inhaler platform. Akela's pipeline also includes a growth hormone releasing hormone (GHRH), which is being developed for frailty and wasting in chronic renal disease. The product is also suitable for other chronic diseases involving a catabolic state and wasting. PharmaForm, Akela's wholly owned subsidiary, is a leading specialty contract service provider offering a portfolio of innovative technologies in drug product development, manufacturing and analytical testing to the pharmaceutical and biotechnology industries. Through its diverse offerings, PharmaForm solutions help clients reduce development costs and accelerate time-to-market.
Akela's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 21.6 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Akela Pharma Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information
Dr. Taneli Jouhikainen, Acting CEO, (512) 632-7537
Source: Akela Pharma Inc.