CAMBRIDGE, Mass.--(BUSINESS WIRE)--Dyax Corp. (NASDAQ:DYAX - News) announced today that it is eliminating 60 positions, effective immediately, from various departments within the Company to focus its resources on the commercialization of its lead product candidate, DX-88. The reduction in force will result in savings that will allow the Company to prepare for the commercial launch of DX-88 in the U.S., pending FDA approval. In addition, the Company expects to reduce expenses during these difficult economic times by reassessing priorities within its internal pipeline of product candidates. Dyax will remain appropriately staffed to advance the development of, and regulatory efforts behind, its DX-88 franchise and select pipeline compounds, as well as to support its Licensing and Funded Research Program.
“Dyax is moving into a new phase of its evolution as a Company, going from a research-stage organization to a fully integrated biotechnology company,” said Gustav A. Christensen, President and Chief Executive Officer of Dyax. “It is important that we focus our resources during this transition to ensure our long-term success, particularly as the broader markets work through a period of almost unprecedented global economic dislocation. The contributions made by those leaving our Company are noteworthy and are greatly appreciated, and we express our gratitude for their commitment to Dyax.”
Individuals subject to the workforce reduction have been offered severance, benefits and other services to assist them in moving on to future opportunities. Dyax expects the reduction in personnel costs, along with other external costs, will contribute approximately $18.0 million in annual savings. Furthermore, there will be one-time charges related to the workforce reduction of approximately $2.0 million during the first quarter of 2009.
About Dyax
Dyax is focused on advancing novel biotherapeutics for unmet medical needs, with an emphasis on oncology and inflammatory indications. Dyax utilizes its proprietary drug discovery technology to identify antibody, small protein and peptide compounds for clinical development. Dyax’s lead product candidate is DX-88 (ecallantide), a recombinant small protein that is currently being evaluated for its therapeutic potential in two separate indications. On March 26, 2009, the Company received a complete response letter from the U.S. Food and Drug Administration (FDA) regarding the review of its Biologics License Application of DX-88 for the treatment of hereditary angioedema (HAE). The Company intends to respond to the FDA’s requests in a timely manner. DX-88 has orphan drug designation in the U.S. and E.U., as well as Fast Track designation in the U.S., for the treatment of acute attacks of HAE. Additionally, DX-88 is being evaluated in Phase 2 trials for the prevention of blood loss during on-pump cardiothoracic surgery (CTS) through Dyax’s partner, Cubist Pharmaceuticals. Dyax licensed to Cubist the intravenous formulation of DX-88 for surgical indications in North America and Europe. DX-88 and other compounds in Dyax’s pipeline were identified using its patented phage display technology, which rapidly selects compounds that bind with high affinity and specificity to therapeutic targets. Dyax leverages this technology broadly with over 70 revenue generating licenses and collaborations for therapeutic discovery, as well as in non-core areas such as affinity separations, diagnostic imaging, and research reagents. Dyax is headquartered in Cambridge, Massachusetts. For online information about Dyax Corp., please visit www.dyax.com.
Dyax Disclaimer
This press release contains forward-looking statements, including statements regarding the annual savings and one-time charges that will result from its reduction in force, and the timing and prospects for review and FDA approval of the BLA for DX-88. Statements that are not historical facts are based on Dyax’s current expectations, beliefs, assumptions, estimates, forecasts and projections about the industry and markets in which Dyax competes. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Important factors which may affect the annual savings and one-time charges that will result from its reduction in force, and the timing and prospects for review and FDA approval of the BLA for DX-88 include the risks that: DX-88 could take a significantly longer time to gain regulatory approval than Dyax expects or may never gain approval; others may develop technologies or products superior to DX-88 or that are on the market before DX-88; DX-88 may not gain market acceptance; Dyax is dependent on the expertise, effort, priorities and contractual obligations of third parties in the manufacture, marketing, sales and distribution of DX-88; and other risk factors described or referred to Item 1A, “Risk Factors” in Dyax’s most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Dyax cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Dyax undertakes no obligations to update or revise these statements, except as may be required by law.
Dyax and the Dyax logo are registered trademarks of Dyax Corp.
Contact:
Dyax Corp.
Ivana Magovcevic-Liebisch, 617-250-5759 Executive Vice President of Administration and General Counsel imagovcevic@dyax.com or
Nicole Jones, 617-250-5744 Director, Investor Relations njones@dyax.com
