Hunkering down ahead of a January 17 PDUFA date for its experimental migraine patch, NuPathe says it will lay off half of its staff as it conserves resources, raises cash and looks for a partner to help commercialize the product in the event of an approval.
In an 8-K filed with the SEC, the Conshohocken, PA-based biotech notes that the cutbacks are tied to its deal on a sale of $28 million in shares to investors. According to Thomson Reuters, NuPathe ($PATH) had 37 employees. But now the biotech is cutting back on its commercialization efforts and reducing expenses on other treatments in the pipeline. As a result of the cuts, an IND for its schizophrenia and bipolar disorder treatment NP202 is being put on hold.
NuPathe has spent much of the past year answering the FDA's complete response letter for its Zelrix (NP101) transdermal patch, which uses an electric pulse to transmit doses of sumatriptan, bypassing an oral approach that many migraine sufferers say can trigger nausea.
NuPathe signaled near the end of September that it would cut costs in order to extend its burn rate through the year ahead. Reuters reports that the company had $7.5 million in cash at the end of June.
- here's the 8-K
- read the Reuters story