Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

BioCryst Pharmaceuticals Announces Focused Corporate Strategy and Restructuring



  BioCryst Pharmaceuticals Announces Focused Corporate Strategy and
  Restructuring

          2013 cash utilization projected to drop 38-45% versus 2012

Business Wire

RESEARCH TRIANGLE PARK, N.C. -- December 07, 2012

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) announced today that in response
to recent events and an assessment of its assets, the Company is restructuring
and implementing a focused strategy to advance its hereditary angioedema (HAE)
and antiviral programs. The restructuring is intended to significantly reduce
BioCryst’s cost structure and scale the organization appropriately for its
current portfolio. The Company plans to direct its cash and other resources
primarily to enable the achievement of important near-term milestones for the
BCX4161 HAE, BCX4430 broad spectrum antiviral and BCX5191 hepatitis C (HCV)
programs.

“The strategic focus and restructuring announced today is based on an
evaluation of our programs and operations, following the setbacks in our
peramivir and BCX5191 programs, as well as the delay in our BCX4161 program,”
said Jon P. Stonehouse, President & Chief Executive Officer of BioCryst. “The
restructuring is a necessary but difficult measure that impacts many talented
and dedicated BioCryst employees who will be leaving the company. We are
grateful for their meaningful contributions and commitment over the years.”

Mr. Stonehouse continued, “We have determined the best path forward and remain
committed to advancing our HAE and antiviral programs to rebuild shareholder
value. To succeed, we must significantly decrease our operating costs and
carefully manage cash, while efficiently advancing our three priority
programs. Therefore, we are implementing a substantial corporate restructuring
to decrease our annual cash utilization and thereby extend our cash runway.
The restructuring provides additional cash runway to reach value inflection
points for these programs.”

BioCryst’s corporate restructuring includes a workforce reduction of 50
percent of the Company’s headcount, or 38 positions. Excluding restructuring
and deal charges, cash savings of $15 to $18 million are expected in 2013, as
compared to an approximate $40 million cash use expected in 2012. The Company
expects to record a restructuring charge of $2 to $4 million in the fourth
quarter of 2012. For 2013, preliminary cash utilization guidance is in the
range of $22 to $25 million, excluding restructuring and deal related costs.
Detailed financial guidance for 2013 will be provided with the fiscal 2012
results announcement in February 2013.

Program Updates & Milestones

  * BioCryst is conducting a study to characterize the efficacy of low doses
    of BCX5191 in chronically HCV infected chimpanzees, with the goal of
    demonstrating meaningful antiviral activity at low doses. Results from the
    study are expected in early 2013.
  * By the end of January 2013, BioCryst plans to complete analysis of the
    peramivir Phase 3 trial results and to review the conclusions with
    HHS/BARDA. After reviewing the totality of peramivir clinical safety and
    efficacy data, a decision will be made regarding peramivir’s future.
  * The BCX4161 Phase 1 program is expected to start around the end of the
    first quarter 2013. The goal of this program is to demonstrate safety,
    adequate drug exposure via oral administration and pharmacodynamic effect
    on kallikrein inhibition.
  * A manuscript describing the activity of BCX4430 against certain
    filoviruses has recently been submitted to a journal for consideration. In
    addition, BioCryst has submitted a proposal to seek additional government
    funding for the development of BCX4430 under the animal rule.
  * The Company’s strategy for the ulodesine gout program remains unchanged.
    BioCryst intends to secure a partner to take over the ulodesine Phase 3
    development and to commercialize the product.

BioCryst Conference Call and Webcast

Executives from BioCryst will host a conference call and webcast on Friday,
December 7, 2012 at 10:00 a.m. Eastern Time, to discuss BioCryst’s future
strategy and initiatives. To participate in the conference call, please dial
1-877-303-8027 (United States) or 1-760-536-5165 (International). No passcode
is needed for the call. The webcast can be accessed by logging onto
www.BioCryst.com. Please connect to the website at least 15 minutes prior to
the start of the conference call to ensure adequate time for any software
download that may be necessary. The event and slide presentation will be
available prior to the event and archived after in the Investor Relations
section of www.BioCryst.com.

About BioCryst Pharmaceuticals

BioCryst Pharmaceuticals designs, optimizes and develops novel small molecule
drugs that block key enzymes involved in infectious and inflammatory diseases.
BioCryst currently has two late-stage programs: peramivir, a viral
neuraminidase inhibitor for the treatment of influenza, and ulodesine
(BCX4208), a purine nucleoside phosphorylase (PNP) inhibitor for the treatment
of gout. In addition, BioCryst is advancing two preclinical programs: BCX5191,
a nucleoside analog inhibitor of HCV RNA polymerase (NS5B) for hepatitis C,
and BCX4161, an oral inhibitor of plasma kallikrein for hereditary angioedema.
Utilizing state-of-the-art structure-guided drug design and crystallography,
BioCryst continues to discover innovative compounds with the goal of
addressing unmet medical needs of patients and physicians. For more
information, please visit the BioCryst’s website at www.BioCryst.com.

BioCryst Forward-Looking Statements

This press release contains forward-looking statements, including statements
regarding future results, performance or achievements. These statements
involve known and unknown risks, uncertainties and other factors which may
cause BioCryst’s actual results, performance or achievements to be materially
different from any future results, performances or achievements expressed or
implied by the forward-looking statements. These statements reflect our
current views with respect to future events and are based on assumptions and
subject to risks and uncertainties. Other important factors include: that
there can be no assurance that BioCryst’s compounds will prove safe and
effective in clinical trials; that development and commercialization of
BioCryst’s compounds may not be successful; that BARDA/HHS may further
condition, reduce or eliminate future funding of the peramivir program; that
BioCryst or licensees may not be able to enroll the required number of
subjects in clinical trials of their respective product candidates and that
such clinical trials may not be successfully completed; that BioCryst or
licensees may not commence as expected additional human clinical trials with
product candidates; that the FDA may require additional studies beyond the
studies planned for product candidates or may not provide regulatory
clearances which may result in delay of planned clinical trials, clinical hold
with respect to such product candidate or the lack of market approval for such
product candidate; that ongoing and future preclinical and clinical
development may not have positive results; that BioCryst or licensees may not
be able to continue future development of current and future development
programs; that such development programs may never result in future product,
license or royalty payments being received; that BioCryst may not be able to
retain its current pharmaceutical and biotechnology partners for further
development of its product candidates or may not reach favorable agreements
with potential pharmaceutical and biotechnology partners for further
development of product candidates; that the corporate restructuring may not
result in reductions in operating cash use and infrastructure expenses, or in
the restructuring expenses as projected; that BioCryst may not have sufficient
cash to continue funding the development, manufacturing, marketing or
distribution of products and that additional funding, if necessary, may not be
available at all or on terms acceptable to BioCryst. Please refer to the
documents BioCryst files periodically with the Securities and Exchange
Commission, specifically BioCryst’s most recent Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and current reports on Form 8-K, all of which
identify important factors that could cause the actual results to differ
materially from those contained in BioCryst’s projections and forward-looking
statements.

BCRXW

Contact:

BioCryst Pharmaceuticals
Robert Bennett, 919-859-7910
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement