Replidyne (RDYN)

[surf1944]

Replidyne Provides Strategic Update
Monday December 10, 4:00 pm ET
- Initiatives include restructuring and pipeline prioritization -


LOUISVILLE, Colo., Dec. 10 /PRNewswire-FirstCall/ -- Replidyne, Inc. (Nasdaq: RDYN - News) today announced an operational restructuring to align critical resources with strategic priorities. These priorities include identifying a partner for Replidyne's late-stage antibiotic, faropenem medoxomil (faropenem), advancing and expanding its infectious disease pipeline, and exploring additional corporate development opportunities.
The key elements of the Company's operating strategy going forward are as follows:


-- Corporate restructuring. To better align the organization with its
strategic and operations priorities, Replidyne has reduced headcount by
approximately 35 percent, primarily in the administrative, clinical,
regulatory, and commercial functions.

-- Pipeline programs. Replidyne will retain key research and development
expertise to progress its most promising preclinical programs,
including REP3123, its investigational antibacterial for the treatment
of C. difficile-associated disease (CDAD), and its DNA replication
inhibition program. As a result of prioritizing these preclinical
programs, Replidyne has suspended the development of topical antibiotic
REP8839 due to the additional investment required to optimize the
formulation and the niche market opportunity.

-- Development strategy for faropenem. Replidyne will continue its ongoing
placebo-controlled Phase III trial for faropenem in acute exacerbation
of chronic bronchitis (AECB). This clinical trial is approaching
50 percent enrollment and results are expected in 2008. Consistent with
prior guidance, Replidyne will not initiate enrollment in clinical
trials for faropenem in acute bacterial sinusitis (ABS) and
community-acquired pneumonia (CAP) until a partner is identified.

-- Business development. Replidyne will retain a strong business
development capability that, in addition to seeking a partner for
faropenem, will pursue opportunities to augment Replidyne's pipeline.


"We have re-sized Replidyne to align the organization with our near-term strategic interests and financial responsibilities," stated Kenneth J. Collins, Replidyne's President and CEO. "By retaining our key scientific assets and our experienced management team, we maintain our core value as an infectious disease company. While Replidyne continues to build on our most promising research and development programs, we will also focus on pursuing strategic alternatives that bring value to Replidyne shareholders."

As of November 30, 2007, Replidyne had cash assets of approximately $93 million. Based on currently planned clinical trials and development activities, as well as the restructuring announced today, the Company believes it has internal cash resources to support operations for at least the next two fiscal years. In connection with the restructuring, Replidyne expects to include a restructuring expense of approximately $1.5 million primarily related to employee severance payments.

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