Vyteris Announces Redirection of Business towards the Advancement of Peptide Delivery
News Feb 06, 2008
Following the successful results of a completed Phase 1 clinical trial demonstrating that Vyteris’ patented Smart Patch transdermal technology delivered a peptide molecule in humans without the use of needles, Vyteris, with approval from its Board of Directors, has redirected its business to focus on the development of peptide delivery using its Smart Patch technology.
The company also stated this redirection will allow for the further development of small molecule delivery using its technology as well.
“Given the potential for success we have seen in our ability to deliver peptides into humans, we believe the greater opportunity for the company and its shareholders lies in focusing on additional partnerships and development initiatives in the peptide space,” said Timothy J. McIntyre, chief executive officer of Vyteris.
“Our technology has now proven successful delivery of certain peptides into humans and now we can work towards partnering with other biotechnology companies to advance their drug delivery beyond the current delivery mechanisms of subcutaneous (subQ) / intramuscular (IM) injections or intravenous (IV) infusions,” McIntyre said.
Given the opportunity within the peptide/small molecule arena, the company will de-emphasize its marketing efforts related to its LidoSite product. As a result, the company will immediately reduce its workforce by approximately 32 employees that were solely or partially dedicated to LidoSite.
This reduction in force, as well as reductions in variable spending related to LidoSite, will reduce the company’s ongoing working capital needs and monthly cash burn while allowing investment into peptide product delivery and development opportunities. Despite the de-emphasis on LidoSite, the company will continue to support LidoSite at the more streamlined level to maintain availability of the product at the current level of demand.
“While we continue to believe LidoSite can benefit venipuncture, dermatology, rheumatology and oncology practices and improve overall patient experience, we believe greater opportunities for success for Vyteris exist with biotechnology companies as well as large pharmaceutical companies, as they continue to search for new and innovative ways to improve their product portfolio,” McIntyre added.