Ore Pharmaceuticals Focuses Resources on Development of Repositioned Compounds
17 June 2008 - 1:31AM
Business Wire
Ore Pharmaceuticals Inc. (NASDAQ:ORXED) announced today a new
alignment of corporate resources. Henceforward, the Company will
invest its resources in clinical development and business
development efforts for compounds repositioned over the past four
years through the application of its proprietary indications
discovery program. As part of this new alignment, Ore
Pharmaceuticals has reassigned a portion of its discovery workforce
to the Company�s drug development team and will also reduce its
remaining workforce related to indication discovery and
administrative activities as it winds down its indication discovery
activities. These changes are intended to concentrate the Company�s
resources on drug development and commercialization, activities it
considers to hold the greatest potential to achieve gains in
shareholder value. Ore Pharmaceuticals Chief Executive Officer,
Charles L. Dimmler, III, commented, �Our indications discovery
program has achieved the goal established at its inception. We�ve
succeeded in identifying new therapeutic applications for a number
of compounds provided by our drug repositioning partners. We
believe that these compounds may be reintroduced to the clinic at
Phase II because their development path is enabled by the prior
work completed by our pharmaceutical company partners. We now are
actively engaged in negotiating to acquire development rights for
several of the most promising of these compounds. We�ve taken the
decision to focus our efforts and resources on developing
clinical-stage candidates in our pipeline. For our lead compound,
GL1001, we expect to file an Investigational New Drug application
with the FDA at mid-year. We are currently seeking out-licensing or
partnering arrangements for the advancement of GL1001. We plan to
follow a similar development process with future compounds in our
pipeline.� Ore Pharmaceutical�s Development Pipeline GL1001 is a
first-in-class, orally administered small molecule that the Company
is seeking to develop for the treatment of a number of
gastrointestinal conditions, including ulcerative colitis, Crohn�s
disease, and gastritis. The Company has demonstrated favorable
preclinical results in in vivo models and expects to initiate
clinical trials for GL1001 in the fall of this year. Crohn�s
disease and ulcerative colitis are conditions with high unmet
medical need affecting more than 900,000 persons in the United
States and an estimated additional population of 4,000,000
throughout the world. Workforce Reduction Central to its efforts to
increase its focus on drug development, the Company has reassigned
certain members of its discovery workforce to its drug development
program. Ore Pharmaceuticals will reduce its workforce from the 71
employees it reported as of December 31, 2007 to approximately 22
by December 31, 2008. The Company expects to make future cash
payments of approximately $1.0 million in connection with
employment terminations resulting from this course of action. These
payments will be made in the next three quarters. �Our decision to
reduce this workforce is particularly difficult because these
employees have been integral to the successes that enabled us to
implement this new alignment. I deeply appreciate all of the past
contributions made to Ore Pharmaceuticals by these very talented
and committed professionals,� said Mr. Dimmler. �The actions
announced today will enable Ore Pharmaceuticals to direct its
resources with greater effect to the ongoing development of GL1001
and the remaining preclinical and subsequent clinical stage
development of additional development candidates in the Company�s
pipeline. This decision reflects the future of the Company.� Ore
Pharmaceuticals Overview Ore Pharmaceuticals is a commercial drug
development company. We have applied our proprietary know how in
integrative pharmacology to identify potential new uses for drug
candidates. We are now focused on developing certain compounds for
which we have found such new uses. Our goal is to meet the demands
of the pharmaceutical industry by supplying development stage drug
compounds to enrich drug development pipelines. We currently have a
lead compound, GL1001, in our own development pipeline for which we
have identified potential new therapeutic uses to treat
gastrointestinal inflammation, including inflammatory bowel disease
(IBD, including ulcerative colitis and Crohn�s disease) and other
conditions. GL1001 has shown indications of efficacy at relevant
doses in in vivo testing for IBD. We intend to initiate clinical
testing of GL1001 in 2008 while actively seeking to out-license or
partner the further clinical development and commercialization of
the compound. We have rights to develop additional compounds that
have been tested in clinical stage testing by our partners but that
are in later stages of preclinical testing for the uses we have
discovered. Visit us at orepharma.com or call 1-877-ORE-PHRM. Safe
Harbor Statement This press release contains "forward-looking
statements," as such term is used in the Securities Exchange Act of
1934, as amended. Such forward-looking statements include the
Company's ability to identify strategies for making its businesses
successful and the impact of such strategies on our business and
financial performance and on shareholder value. Forward-looking
statements typically include the words "expect," "anticipate,"
"believe," "estimate," "intend," "may," "will," and similar
expressions as they relate to Ore Pharmaceuticals or its
management. Forward-looking statements are based on our current
expectations and assumptions, which are subject to risks and
uncertainties. They are not guarantees of our future performance or
results. Our actual performance and results could differ materially
from what we project in forward-looking statements for a variety of
reasons and circumstances, including particularly risks and
uncertainties that may affect the Company's operations, financial
condition and financial results and that are discussed in detail in
the Company's Annual Report on Form 10-K and our other subsequent
filings with the Securities and Exchange Commission. They include,
but are not limited to: whether we can obtain from our partners
development rights to repositioned compounds; whether we can
successfully develop to a sufficient stage and outlicense
repositioned compounds on acceptable terms and whether such
outlicensed compounds are then successfully developed and
commercialized and generate sales and resulting milestone payments
from development and royalties from sales for the Company,; whether
we will be able to begin to generate sufficient new revenue from
licensing or other transactions soon enough to support our
operations; whether there will be valid claims for indemnification
from the buyers of our Genomics Assets; whether there will be
claims from the landlords of the leased properties we have assigned
to buyers of our Genomics Assets or our Preclinical Division that
we would be required to pay as guarantors of such leases; whether
we will be able to collect amounts due under the terms of the
promissory note from the buyer of our Genomics Assets; whether we
will be able to manage our existing cash adequately and whether we
will have access to financing on sufficiently favorable terms to
maintain our businesses and effect our strategies, including
development of repositioned compounds; whether we will be able to
recruit and retain qualified personnel for our commercial drug
development business; whether we will be able to find a
sufficiently attractive strategic option to develop our molecular
diagnostics capability that does not require significant use of our
financial assets; potential negative effects on our operations and
financial results from workforce reductions and the transformation
of our business; and the possibility of further write-down of the
value of certain intangible assets of the Company. Ore
Pharmaceuticals Inc. undertakes no obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
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