Trevena Inc. said it is restructuring to focus resources on the potential approval and commercialization of its painkiller Olinvo in the U.S.
As part of the initiative, Trevena will reduce its workforce by about 30%, or 21 full-time employees, mainly from its research team. Further, Chief Scientific Officer Michael Lark will leave the company in mid-December.
The company will halt its investment in early stage research. Trevena plans to complete its ongoing phase 1 trial of TRV250 for acute migraine, after which it will assess options for its further development, as well as for its potential treatments for neuropathic pain.
The company estimates the reduction in force, along with other cost savings initiatives, will reduce cash expected to be used in operating activities over the next three calendar years by about $40 million. Trevena also expects to incur a charge in the fourth quarter of 2017 of about $2.0 million related to the reduction, about $1.7 million of which will go to severance costs and related expenses.
Trevena expects to have sufficient funds to support operations into the fourth quarter of 2018.
Trevena is developing Olinvo, or oliceridine injection, for the management of moderate to severe acute pain. The company said it is still on track to submit a new drug application for Olinvo to the U.S. Food and Drug Administration in October.