* To cut about 45 pct; had workforce of 31 on March 15
* Cut comes after FDA rejects sleep-disorder drug
* Says to record a charge of about $1.1 mln in Q3
July 15 Transcept Pharmaceuticals Inc TSPT.O
said it would cut about 45 percent of its workforce after the
U.S. Food and Drug Administration denied approval of its
sleep-disorder drug Intermezzo.
The company, which as of March 15, 2011, had 31 employees,
expects a restructuring charge of about $1.1 million in the
third quarter. It also expects to record a stock compensation
charge related to modifying certain stock options as a result
of the restructuring, in the same period.
As a result of the restructuring, it expects to reduce
annualized payroll and benefit expenses by about $2.1 million.
"Our staffing needs have changed after the recent news from
the FDA on the regulatory status of Intermezzo. We are
therefore phasing out certain positions that are non-essential
to our plan," Glenn Oclassen, chief executive officer, said in
The company's insomnia drug, whose proposed label was
Intermezzo, was denied approval by regulators, who cited
concerns it could impair driving ability the day after it was
Transcept's shares have lost 45 percent since the drugmaker
revealed earlier on Tuesday it expected a rejection but has
since recouped some of its losses as investors felt the drug's
efficacy in treating sleep disorder remained unquestioned.
Shares of the Richmond, California-based company closed 3
percent higher at $4.87 on Friday on Nasdaq.
(Reporting by Siddharth Cavale in Bangalore; Editing by Gary