Phosphagenics (ASX: POH) has announced a corporate restructure resulting from its recently completed strategic review.
The restructure will reduce the company's early phase, higher risk research activities and redirect resources towards delivery of its short to medium term, later stage, development projects that have a higher probability of success.
The company said the change takes effect immediately and involves a reduction of up to ten staff positions, with a change to a more outsourced model for several previously in-house activities.
According to Phosphagenics’ CEO, Dr Ross Murdoch, “Not all of the changes we have made to the business over the past few months have been easy, particularly those that involve reducing staff numbers, but all have been made with the same goal in mind: optimize the delivery of value from our key assets.
"With these changes Phosphagenics is able to extend its financial runway well into 2017 improving its ability to deliver our high priority, short to medium term later phase projects, such as the opioid patch development programs, the animal health and nutrition trials and the TPM manufacturing expansion project.”
Phosphagenics announced it will prioritise three projects in its Human Health and Nutrition business:
- Phase 2 clinical development of the TPM/Oxycodone patch for PHN;
- reformulation of the TPM/Oxymorphone patch; and,
- development of the unnamed TPM antibiotic injectable with partner Mylan.
"The completion of enrolment and the delivery of initial results for the Phase 2 proof of concept with the TPM/Oxycodone patch, and the agreement with a major manufacturing company for the initiation of the reformulation of the TPM/Oxymorphone patch are targeted for this quarter," said the company
In its Animal Health and Nutrition business, the company said it would implement a comprehensive program involving proof of concept studies across multiple species in 2015-16.
"The program is designed to provide valuable proof of principle for TPM as a food additive and also the appropriate data to satisfy the requirements of both regulatory agencies and potential partners. The first of these trials has already initiated dosing and initial results are expected by the end of this quarter," said Phosphagenics.
In its Bulk Production and Personal Care business, the company said it will prioritise the development of a new reactor to upgrade its manufacturing facilities in anticipation of increased demand in 2016.
“The business is continuing to move forward and I believe we are now poised to reap the benefits from all the hard work," said Dr Murdoch.
"A number of our most advanced projects are set to deliver key milestones over the remainder of 2015 into 2016, and we expect this to lead to greater news flow. The decision to streamline our operations and reduce our focus on early internal research will not only ensure that we can deliver key milestones as quickly and cost effectively as possible but also that we have the financial runway to capitalize on these,” he added.