A.P. Pharma Announces Additional Restructuring Effort
05/29/2009
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REDWOOD CITY, Calif.--(BUSINESS WIRE)--May. 29, 2009--
A.P. Pharma, Inc. (Nasdaq:APPA), a specialty pharmaceutical company,
today announced that it has implemented a reduction of its staff
representing approximately 34% of its work force. The actions are being
taken to allow the Company to provide the resources needed to continue
advancing its lead program, APF530, towards regulatory approval and
commercialization. APF530 is a long-acting formulation of granisetron
that utilizes the Company’s proprietary Biochronomer™ drug delivery
system. The New Drug Application (NDA) for APF530 was submitted earlier
this month for the prevention of chemotherapy-induced nausea and
vomiting (CINV).
"A.P. Pharma’s recent NDA submission for APF530 was the result of the
dedication of our entire team, making this reduction in our work force
even more difficult,” said Ronald J. Prentki, A.P. Pharma’s president
and chief executive officer. “Considering the continuing challenges of
today’s economic environment, it is necessary for us to make additional
reductions to our staff as we focus the Company’s resources on working
towards approval of APF530 in the first half of 2010. I want to extend
my thanks and gratitude to our departing colleagues and wish them the
very best in their future endeavors.”
The Company expects one-time costs associated with this headcount
reduction to be approximately $350,000, which will be recorded in the
second quarter of 2009. The headcount reduction included 11 employees
and is a continuation of the organization’s commitment to cash
preservation, initiated last fall.
About A.P. Pharma
A.P. Pharma is a specialty pharmaceutical company developing products
using our proprietary Biochronomer™ polymer-based drug delivery
technology. Our primary focus is on our lead product candidate, APF530,
which has completed a pivotal Phase 3 clinical trial for the prevention
of CINV. An NDA for APF530 was submitted in May 2009. The Company has
additional clinical- and preclinical-stage programs in the area of pain
management, all of which utilize its bioerodible injectable and
implantable delivery systems. For further information, please visit the
Company's web site at www.appharma.com.
Forward-looking Statements
This news release contains "forward-looking statements" as defined by
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve risks and uncertainties, including
uncertainties associated with timely development, approval, launch and
acceptance of new products, satisfactory completion of clinical studies,
establishment of new corporate alliances, progress in research and
development programs and other risks and uncertainties identified in the
Company's filings with the Securities and Exchange Commission. We
caution investors that forward-looking statements reflect our analysis
only on their stated date. We do not intend to update them except as
required by law.
Source: A.P. Pharma, Inc.
Corporate Contact:
A.P. Pharma, Inc.
John B. Whelan,
650-366-2626
Vice President, Finance and Chief Financial Officer
or
Investor
and Media Relations:
Corporate Communications Alliance, LLC
Edie
DeVine, 209-814-9564
