Printer Friendly


 MOUNTAIN VIEW, Calif., Nov. 4 /PRNewswire/ -- Scios Nova Inc. (NASDAQ: SCIO) today announced that it has implemented a reduction in staff to bring the company's workforce in line with its previously announced strategy to direct the company's resources to those areas in which it has strong product candidates, competitive advantages and technological expertise.
 "With the rapidly changing health care environment, it is important for biopharmaceutical companies to be proactive in addressing the issues this industry will face over the next decade," said Richard L. Casey, Scios Nova chairman and chief executive officer. "Our revised strategic plan is highly focused on the development of products that satisfy significant unmet medical needs and can reduce the overall cost of acute- care hospitalization. We believe this plan will enable the company to effectively compete in the pharmaceutical marketplace of the late 1990s and the 21st century.
 "Our primary objective is to pursue aggressively the development of the company's lead products to ensure that Scios Nova achieves its goal of becoming a profitable biopharmaceutical company within the next five years," said Casey. "To reach our objective, we will direct the company's resources specifically toward developing proprietary products which address acute conditions, primarily in the areas of cardio-renal disease and inflammation.
 "Consistent with our decision to focus on the development of acute- care products, we are reducing expenses in those areas not directly related to the company's strategic plan," said Casey. "To this end, we have eliminated 44 positions, or 12 percent of the total workforce, which are not required to support Scios Nova's strategic plan and are not funded through corporate partnerships." The company is expected to incur a one-time charge of approximately $850,000 associated with the staff reduction.
 The company's proprietary research and development portfolio includes AURICULIN(R) atrial natriuretic peptide (ANP), NATRECOR(TM) brain natriuretic peptide (BNP) and a research effort directed to the development of new anti-inflammatory agents. AURICULIN ANP is a breakthrough treatment for acute renal failure, a condition affecting more than 130,000 patients in the United States for which there is currently no treatment. The company is conducting a multi-center 500-patient Phase III clinical study of AURICULIN ANP which should be completed by the end of 1994.
 Scios Nova is developing NATRECOR BNP to treat acute congestive heart failure, an often fatal condition affecting more than 700,000 patients in the United States each year. Within the next few months, the company plans to begin clinical studies using NATRECOR BNP in heart failure patients.
 Scios Nova is focusing its research program on developing new treatments for acute conditions such as trauma, systemic inflammatory response syndrome (SIRS) and acute pain. The company's primary research efforts are focused in two areas, bradykinin antagonists and leukocyte adhesion inhibitors.
 The bradykinin antagonist project is directed to developing blockers of the bradykinin receptor, a molecule which mediates the activity of bradykinin, a powerful pain- and inflammation-producing substance found naturally in the body. The company's research efforts have led to the discovery of a very potent bradykinin antagonist which will enter clinical development for an acute inflammatory condition within the next 12 to 18 months.
 The company's leukocyte adhesion inhibitor project is based on a class of novel small molecule compounds which block white blood cell activation and inhibit the body from mounting an unwarranted inflammatory response. The company is conducting research to develop potent and specific small molecule leukocyte adhesion inhibitors.
 Research and development programs which are outside of the scope of the company's focus areas will be developed only if funding is available through collaborations with corporate partners. These programs include basic fibroblast growth factor (bFGF), insulinotropin, Alzheimer's disease and non-acute indications for products in the company's focus areas.
 Scios Nova's financial strategy involves generating cash flow from products sold by the company's commercial operation, along with careful management of the company's more than $115 million in cash. In 1992, Scios Nova's commercial operation generated $5 million of cash flow from sales of four psychiatric products. The company's objective is to increase cash flow over the next several years by acquiring additional products to market through the commercial operation.
 Scios Nova, based in Mountain View, is a biopharmaceutical company engaged in the discovery, development and commercialization of novel human therapeutics. Scios Nova focuses its research and development efforts toward the treatment of acute illnesses, primarily in the areas of cardio-renal disease and inflammation. The company is also collaborating with corporate partners in the areas of fibroblast growth factor (bFGF), insulinotropin and Alzheimer's disease. The company's drug discovery technology encompasses both biotechnology techniques and small molecule design to develop new biopharmaceutical products.
 -0- 11/4/93
 /CONTACT: Kira Bacon of Scios Nova, 415-940-6629/

CO: Scios Nova Inc. ST: California IN: MTC SU: RCN

TM -- SJ004 -- 0914 11/04/93 16:15 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 4, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters