Aralez Pharmaceuticals Inc. is implementing a program of cost-savings initiatives targeted at providing additional financial flexibility while maximizing the value of its assets.
Under the plan, the company will reduce its U.S. sales force by 32% and realign certain financial resources to support a phased launch of its drug Zontivity that is expected to begin in mid-April, along with a significant decrease in marketing spend on Yosprala.
The reduction in the sales force is expected to reduce the current annual run rate of operating expenses by about $7.5 million, and the company expects to incur cash severance costs of about $600,000 in the second quarter.
Aralez said it has also started other initiatives that are expected to reduce spending across the business and is in the process of finalizing its overall cost-savings plan. It plans to communicate details of this plan in its first-quarter earnings release to be issued in early May.