EpiCept Ceases Drug Discovery Operations, Cuts Workforce

EpiCept Corp. is discontinuing all drug discovery activities and reducing its workforce by approximately 65%. These actions are expected to reduce annual expenses by at least $5.5 million. EpiCept will direct its resources toward the registration of Ceplene in North America and clinical development programs. 

“This is a difficult decision and is largely attributable to the current financing environment, but in taking these actions we will help ensure that EpiCept has the resources to execute our development strategies for our most advanced opportunities,” stated Jack Talley, president and chief executive officer of EpiCept. “We are currently focused on partnering Ceplene in Europe and pursuing regulatory approval of Ceplene in the U.S. and Canada. In addition, we look forward to advancing our other drug candidates through key clinical trials, such as our Phase Ib development program for EPC 2407 in patients with advanced solid tumors and lymphomas.”

Under the layoff plan, affected positions will be eliminated immediately and the remainder will be eliminated during the next three to six months. The company expects to incur a one-time charge during 1Q09 of approximately $2.5 million related to the closing of the San Diego facility. EpiCept plans to sell the proprietary ASAP drug discovery technology or partner with an interested party.