Boston Biotech Jobs Cut with Acusphere
Posted on March 4, 2009
One company is planning to cut Boston biotech jobs.
Acusphere has announced its plans to cut 40 jobs, or about two-thirds of the company’s workforce. The company also plans to close its headquarters in Watertown, Mass., which will be consolidated with the facility in Tewsbury, and file to suspend reporting requirements to the Securities and Exchange Commission.
Following the recent round of job cuts, Acusphere will be left with only 20 workers, down from 118 last year. Included in the latest job cuts was CFO Lawrence Gyenes, and the company said it has no plans to replace that position.
“The reductions cut across all functional areas including manufacturing, quality systems, drug development, regulatory, finance and administration,” the company said in a press release. “These reductions are intended to extend the company’s cash position to accommodate continuing discussions with FDA.”
During December 2008, the Food and Drug Administration rejected Acusphere’s heart disease screening drug, saying the product’s risks outweighed any potential benefits. The product, Imagify, would have been the company’s first product to gain FDA approval. It is thought the job cuts and restructuring are taking place to make up for lost costs associated with Imagify.
“These decisions are extremely difficult but both appropriate and necessary given the current financing environment for life sciences companies, our continued belief that Imagify will be approved and our improved prospects for financing on more favorable terms after reaching agreement with FDA on the regulatory path forward for Imagify,” CEO Sherri C. Oberg said in the press release.