Arena Pharmaceuticals announces shift to focus on proprietary clinical stage pipeline

Additional cost reductions implemented to support development program prioritisation.

"We believe our clinical-stage pipeline has the potential to deliver first or best-in-class compounds for a broad range of indications. Building a streamlined and highly-focused organization supports our primary objective — developing our pipeline in a timely and efficient manner," said Amit Munshi, Arena's President and CEO.

Arena will reduce its US workforce by approximately 100 employees, or 73%, primarily in areas of research, manufacturing and G&A, which Arena estimates will reduce annualized cash expenditures for personnel by approximately $17 million and related other operating expenses of between $6-8 million. Arena plans to implement additional cost control measures to further reduce its expenditures, including reductions at its Swiss manufacturing facility.

As a result of the US workforce reduction, which is planned to be completed by 31 August 2016, Arena estimates it will incur restructuring charges, primarily in the second quarter of 2016, of approximately $6.1 million (a majority of which are cash expenditures) in connection with one-time employee termination costs, including severance and other benefits.