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Critical Therapeutics, Inc. (Nasdaq:CRTX) today announced a new business strategy to focus the Company’s resources on the commercialization of the twice daily, controlled-release formulation of zileuton (zileuton CR) for the chronic treatment of asthma and on clinical development of the intravenous formulation of zileuton (zileuton IV) for acute asthma. As part of this initiative, Critical Therapeutics will significantly reduce net cash expenditures through lower spending on its U.S. specialty sales force, as well as on its research and development programs. In a separate release, the Company announced that it has entered into definitive agreements with institutional investors for the sale of approximately $20 million of securities through a registered direct offering. The combination of these actions strengthens the Company’s strategic position to deliver value for patients, physicians and shareholders. The Company is eliminating 63 positions that will be completed by December 31, 2006. Following completion of the restructuring, the Company will have approximately 59 employees. These reductions reflect a downsizing of the sales force that markets the Company’s FDA-approved asthma drug, ZYFLO® (zileuton tablets). Critical Therapeutics reduced its 50-person respiratory sales force to 18 representatives who will be focused on continuing to promote ZYFLO to respiratory specialists and driving depth within in the existing base of prescribers in major metropolitan markets across the U.S. A total of 20 research and development positions were eliminated as part of the restructuring. As a result of the change in the Company’s strategy, Chief Scientific Officer, Walter Newman, Ph.D., resigned from Critical Therapeutics effective October 31, 2006. “We believe the actions announced today position us for success leading into the launch of our controlled-release formulation of zileuton, pending approval from the U.S. Food and Drug Administration,” said Critical Therapeutics President Frank Thomas. “The feedback from physicians to date indicates that ZYFLO’s current four times daily dosing regimen will continue to make it difficult to gain broad penetration in the asthma market. With the twice daily, controlled-release formulation, we expect broader and deeper usage by prescribing physicians, while offering asthma patients another treatment option.” This month, the FDA accepted for review the Company’s New Drug Application for its investigational drug, zileuton CR. The Prescription Drug User Fee Act date is May 31, 2007.
Article Source: http://www.new.citynewslive.com
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