Northfield Laboratories To Close Corporate Office, Cut Staff
The company has eliminated thirteen positions at its manufacturing facility in Mount. Prospect, Illinois, and has reduced hours for remaining staff. In addition, Northfield is closing the corporate offices and relocating staff to a company-owned facility in Mount Prospect to further reduce operating costs.
Northfield said it believes these actions can be taken and still maintain the capability to address manufacturing, regulatory and licensing issues following the recent completion of FDA's pre-license inspection of the manufacturing facility.
The company said it has advised the city of Evanston, Illinois, the Village of Mount Prospect, Illinois and the Illinois Department of Commerce & Economic Opportunity that unless additional funding for operations is obtained, Northfield plans to effectuate a "plant closing" under the Illinois Worker Adjustment and Retraining Notification Act and applicable regulations, which may result in the termination of employees at its main office and plant facilities in sixty days, on or around May 5.
Northfield said is also continuing its efforts to seek additional financing.
At the end of the second fiscal quarter on November 30, 2008, Northfield posted $10.1 million in cash and marketable securities. Based on the implementation of the measures described, Northfield said it believes it will have sufficient cash to continue operations until April 30.
Northfield has a target FDA review date of April 30 for its Biologics License Application for its human hemoglobin-based oxygen carrier, PolyHeme.
Evanston, Illinois-based Northfield Laboratories is engaged in developing a hemoglobin-based oxygen-carrying red blood cell substitute. The initial indication the company is seeking for its investigational product PolyHeme is the treatment of life-threatening red blood cell loss when an oxygen-carrying fluid is required and red blood cells are not available.
PolyHeme is a solution of chemically modified human hemoglobin designed to require no cross-matching and is therefore compatible with all blood types. It has an extended shelf life in excess of twelve months.
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