- With the aim of reducing operating expenses, Arena Pharmaceuticals (NASDAQ:ARNA) cuts 73% of its workforce (~100 employees), primarily from research, manufacturing and G&A. The downsizing will be completed by the end of August.
- The company expects to record a $6.1M charge in Q2 for severance-related costs. It expects annualized cash expenses for personnel to drop ~$17M and other related expenses by $6M - 8M. Further cost control measures will be instituted in the near future, including headcount reductions at its Swiss manufacturing site.
- Arena plans to focus its efforts on three pipeline programs: etrasimod (APD334) for ulcerative colitis and potentially for inflammatory bowel disease, APD371 for the treatment of pain and ralinepag (APD811) for pulmonary arterial hypertension.
- Management will further update investors during its Q2 earnings call.