Biotech Values

[genisi]

ALTU

If I heard right on the quarterly call they are basically looking to sell some/all of Trizytek anyway.

They gave it away plus 75% restrictions and the stock is down more than 50%.

Altus Pharmaceuticals Realigns Product Development Priorities and Focuses on Long-Acting Growth Hormone Candidate ALTU-238

http://finance.yahoo.com/news/Altus-Pharmaceuticals-bw-14151695.html

WALTHAM, Mass.--(BUSINESS WIRE)--Altus Pharmaceuticals Inc. (NASDAQ: ALTU - News) announced a strategic realignment of product development priorities to focus on the advancement of the Company’s breakthrough, long-acting, recombinant human growth hormone candidate, ALTU-238, as a once-per-week treatment for adult and pediatric patients with growth hormone deficiency. To conserve capital resources, Altus will discontinue its Trizytek program activities. This discontinuation will result in the transfer of certain Trizytek intellectual property rights and regulatory filings to Cystic Fibrosis Foundation Therapeutics, Inc. (CFFT), the nonprofit affiliate of the Cystic Fibrosis Foundation, in accordance with Altus’ 2001 agreement with CFFT. In addition, Altus is evaluating the feasibility of moving forward its early-stage clinical and pre-clinical programs and will make future decisions on these programs depending upon the availability of resources.

As a result of this realignment, Altus will implement a workforce reduction of approximately 75%, primarily in functions related to the Trizytek program as well as certain general and administrative positions. In connection with the restructuring, Chief Medical Officer, Burkhard Blank, M.D.; Chief Financial Officer, Jonathan Lieber; and, Vice President, Business Development, John M. Sorvillo, Ph.D., will be leaving the Company. Employees affected by the reduction will be offered severance benefits. Following the staff reductions, Altus will have approximately 35 employees at its headquarters in Waltham, MA.

“In this time of global economic uncertainty and limited cash resources, we were faced with the difficult decision of realigning our operations to support a single clinical development program. We believe that ALTU-238 represents a very promising opportunity to make a major impact on the multi-billion dollar market for growth hormone replacement products. As a mid-stage program with a relatively straight-forward path toward regulatory approval, narrowing our focus on ALTU-238 will enable Altus to preserve capital, minimize clinical and regulatory risk, and build value for our shareholders,” stated Dr. Georges Gemayel, President and Chief Executive Officer of Altus Pharmaceuticals. “I would like to express my sincere gratitude to our affected employees for their many contributions to the Company, and we will do our best to ease their transitions. I would also like to thank the many patients and their families who have supported the development of Trizytek to this point through their participation in our clinical trials. We are hopeful that we will be able to transition the Trizytek program to Cystic Fibrosis Foundation Therapeutics, which has provided such substantial support and funding for the development of this novel therapy.”

Altus expects that these personnel and operating decisions will reduce current annualized operating expenses by approximately 65% and should extend the Company’s cash runway to approximately the end of 2009. The Company expects to record a restructuring charge of approximately $4.0 million in the first quarter of 2009, primarily representing cash payments for severance expenses, the majority of which will be paid out over the course of 2009. The Company may incur further charges, which may be significant, due to events related to the discontinuation of the Trizytek program, including the settlement of various contractual obligations and facilities-related costs. Additional financial guidance will be provided when full 2008 financial results are announced in March 2009. Altus expects the majority of the realignment plan to be completed by the end of the first quarter 2009.

CFFT has asserted to the Company that Altus’ decision to discontinue the clinical development and planned regulatory filings for Trizytek places Altus in breach of the 2001 agreement between Altus and CFFT for the development of Trizytek. Altus expects that discontinuation of the Trizytek program will terminate the Company’s exclusive sublicense to Trizytek from CFFT in North America and that CFFT will gain exclusive control of the Trizytek program and related intellectual property rights in North America. Altus and CFFT are in discussions regarding the financial and operational terms of an agreement under which CFFT would obtain worldwide rights to Trizytek and assume funding responsibility for the ongoing Phase 3 long-term safety study for Trizytek.

Dr. Gemayel continued, “Going forward, Altus will be led by a focused and experienced team. Our day-to-day financial operations will be led by Thomas Phair, who will assume new responsibilities as Vice President, Treasurer and Principal Accounting and Financial Officer. Our development program for ALTU-238 will be led by our Vice President, Process Development & Engineering, Jill Porter; Vice President, Program Management, Philip Gotwals; and Vice President, Clinical Development and Medical Affairs, Kenneth Attie, M.D. Ken recently joined Altus after having served as a consultant for the ALTU-238 program and has a strong background in the successful development and commercialization of growth hormone products.”
snip