The bloodbath rages on. Today, AP Pharma (APPA), whose lead drug is a subcutaneuos formulation of Granisetron for nausea/vomiting, has axed 11 employees or about 34% of its workforce.

The pink slips follow APPA’s earnings earlier this month when it announced it was running low on cash and needed to cut costs while it looked for funding or partners.

APPA CEO Ronald Prentki made some comments:

“A.P. Pharma’s recent NDA submission for APF530 was the result of the dedication of our entire team, making this reduction in our work force even more difficult. Considering the continuing challenges of today’s economic environment, it is necessary for us to make additional reductions to our staff as we focus the company’s resources on working towards approval of APF530 in the first half of 2010. I want to extend my thanks and gratitude to our departing colleagues and wish them the very best in their future endeavors.”

Ouch…

Last week, Dr. Reddy’s announced it was closing its Atlanta office. An email to the office went unreturned, but we finally heard back. Here is what we learned from their Corporate Development team:

“The company is not reducing its headcount in any significant way. We had only ten scientists working at the Atlanta facility currently. Two of them will continue to work for us even after the facility closes. It is our intention to offer all our employees a role either at the Aurigene-Hyderabad office, the Proprietary Products Business or within other parts of the organization. Specific to the India facilities, we are not reducing headcount at this location. The existing staff will either become Aurigene employees or Proprietary Products employees.”

Hmmm?

Finally, we heard more from our tipster about the latest Metabasis (MBRX) layoffs. Some of this was not new, but we’re wondering if the cash status is that serious…

“The employees were told to go to BofA and cash the checks immediately. At least one employee had a hold put on the check. That means that either they are totally out of cash or not enough cash was put into the payroll account.”

Speculation…

What about the status of MBRX? Here’s what our tipster thinks…again, this is unconfirmed obviously:

“They are going to file for bankruptcy within the week. You can almost take this one to the bank. The IP assets will be either sold (20-40% chance) or rolled out into a new, re-capitalized, private company (the more likely scenario). Mark knows the science, the products are solid and the IP is quite strong. I predict that a new, discovery company will be formed. Mark will play a prominent role (CEO), as well as David Hale, who will lead the re-cap.”

Lastly, what’s going on over the weekends?

“…make sure you stay up to date on all the SEC filings, if the company doesn’t raise capital when it can, and make sure someone watches the building on the weekends. Before each one of the RIF’s the company officers were at the facility during saturday and sunday night.”

I guess working weekends is not normal at MBRX?

Thoughts?

Anonymous Tip? Comments? Contact us at: hr@iguanabio.com

Image from schlissellaw

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