UPDATE 1-Neurobiological ends stroke drug development, cuts jobs

Tue Jan 13, 2009 8:31am EST

Jan 13 (Reuters) - Neurobiological Technologies Inc NTII.O said it suspended further development of Viprinex, its treatment for acute ischemic stroke, and would cut about 75 percent of its workforce.

The company had suspended enrollment in the clinical trials for Viprinex in December after an interim analysis showed that the drug did not improve overall patient outcomes.

"Following a thorough review of the interim data, it was determined that there was no group of patients in which Viprinex improved outcome, and therefore further development is not warranted," Chief Medical Officer Warren Wasiewski said in a statement on Tuesday.

Majority of the employees will be terminated this week, with additional employee terminations planned for February and March, the company said, adding that it was only keeping the minimum employees necessary to carry out operations and complete contractual obligations.

Shares of the company closed at 45 cents Monday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Himani Sarkar)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video