Inex cuts workforce, reduces burn rate

Inex Pharmaceuticals Corp, Vancouver, is slashing its workforce and cutting back on its planned pipeline activities following the rejection by US regulatory authorities of its application for accelerated approval of Marqibo, the firm’s lead anticancer drug. The Oncology Drugs Advisory Committee of the US Food and Drug Administration voted unanimously against accelerated approval for Marqibo, Inex’s proprietary drug comprised of the off-patent drug vincristine encapsulated in Inex’s sphingosomal drug delivery technology. As a result, Inex’s stock value plummeted, prompting the firm to cuts its workforce from 165 to 62 and reduce its burn rate to $1 million per month. Inex will enter 2005 with $27 million, enough to fund company operations until the end of 2006. Workforce reductions included the resignations of the firm’s VP research and chief scientific officer and VP finance and chief financial officer. A new randomized Phase III trial of Marqibo will proceed as soon as possible....