Adolor cuts back to focus on Entereg

US biopharmaceutical firm Adolor Corp has reduced its work force by around 45 employees, or 28% of its staff, as well as other cost saving  initiatives intended to lower its annualized net operating cash burn.  The company's primary focus going forward will continue to be on its  first commercial product, Entereg (alvimopan), which was launched in  mid-2008, and the advancement of its clinical programs. The firm is  restructuring its discovery group to focus on late-stage, preclinical  compounds, with fewer resources dedicated to early-stage programs.

"This was a very difficult decision for the company. Given the broader  economic conditions in our industry, it is necessary for us to preserve  our resources for the commercialization of Entereg and the development  of our pipeline," said Michael Dougherty, chief executive.

Once this reduction in force and other cost savings initiatives are  fully in place later this year, Adolor expects that annualized cash burn  will be reduced by about $12.0 million, or about 25% of company cash  expenditures not directly related to Entereg. Based on its revised  operating plan, the company anticipates that it will end fiscal year  2009 with some $85.0 million in cash and investments. During the second  quarter, it expects to record a cash restructuring charge of about $2.5  million, primarily related to severance and other such expenses.