Presented by Biovays…

We just read that Adolor (ADLR) has laid off 45 employees, or 28% of its workforce, to save cash.

The move comes as ADLR tries to focus its marketing efforts on ENTEREG® (alvimopan), which was launched in mid-2008. Partnered with GSK, ENTEREG sales haven’t been doing as well as anticipated due to its limited short-term hospital (higher incidence of heart attacks in clinical trials) use and cumbersome E.A.S.E implementation, which is used to educate hospitals and get them up to par with the product.

Anyway, the axes will cost ADLR $2.5M in severance and save them about $12.5M annually. Here’s the math:

A. Number of employees axed = 45

B. Severance charge to ADLR = $2.5M

C. Severance/employee = B/A = $55,555

That’s a lot, no? Remember that’s an estimate and includes cost savings from employee expenses, benefits, etc. The real amount is most likely lower. Of course, Uncle Sam always gets his cut – that bastard.

Here was CEO Michael Dougherty’s comments:

“This was a very difficult decision for the Company. Given the broader economic conditions in our industry, it is necessary for us to preserve our resources for the commercialization of ENTEREG and the development of our pipeline. I want to thank the affected employees for their efforts on behalf of the Company and their substantial contributions.”

The bloodbath goes on…

Anonymous Tip? Laid off? Contact us: hr AT iguanabio DOT com

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