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Anthera Pharmaceuticals to cut 45% of workforce

Published: 09:35 16 Mar 2012 EDT

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Drug maker Anthera Pharmaceuticals (NASDAQ:ANTH) said after markets closed Thursday that it plans to slash 45 percent of its workforce in a bid to decrease operating costs following the termination of an experimental drug.

Before the opening bell, the news sent the company’s share price down 5.45 percent to reach $2.95 in trade on the Nasdaq on Friday.

Anthera also said it will eliminate vendor activities, which will allow the company to re-allocate its resources to other potential development programs and product portfolio efforts.

The company’s move comes on the heels of it ending a late-stage trial for Vista-16, because the drug did not show improvement compared to placebo as a treatment for acute coronary syndrome.

The trial was designed to study Vista-16 in its ability to reduce problems including heart attacks, strokes, and death from cardiovascular disease.

Last week, the Data Safety Monitoring Board made the recommendation to halt the Vista-16 clinical study due to a lack efficacy that could not be "reasonably overcome" in the rest of the trail.

The board’s decision was based on safety and efficacy data available for the Vista-16 clinical trial, the company said.

Anthera has ceased patient enrolment and dosing in the phase III study, and notified investigators to remove patients from therapy. Indeed, the company noted that it will be carrying-out final patient follow-up visits within the coming weeks.

The drug maker said, however, that it will continue the development of its lupus drug called blisibimod, or A-623, which is progressing according to plan.

The Pearl-Sc study – which finished enrolment in the fourth quarter of 2011 – is examining the therapeutic benefits of monthly and weekly subcutaneous, or under the skin, administration, in patients suffering from lupus.

The main endpoint of the study is clinical improvement at 24 weeks. Anthera said that the study remains on track to produce top-line efficacy data in the second-quarter of 2012.

Lupus is an auto-immune disease, which means that the body’s immune system mistakenly attacks healthy tissue, leading to long-term chronic inflammation.

While the underlying cause of autoimmune diseases is not fully known, it is much more common in women than men.

Founded in 2004, the biopharmaceutical company develops and sells drugs to treat cardiovascular, inflammation and autoimmune diseases.

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