MBI restructures to focus on US contrast

March 1, 1995

Ultrasound contrast developer Molecular Biosystems has let go 25% of its staff and eliminatednon-ultrasound R&D programs in an effort to cut expenses.The San Diego firm, which developed the echocardiography agentAlbunex, said the move should save $6

Ultrasound contrast developer Molecular Biosystems has let go 25% of its staff and eliminatednon-ultrasound R&D programs in an effort to cut expenses.The San Diego firm, which developed the echocardiography agentAlbunex, said the move should save $6 million annually. MBI'sstock fell 23% to $7 a share on the news.

MBI last week said it terminated 48 employees from its 197-personwork force and discontinued R&D for MRI and CT agents. MBIwill continue developing Oralex, a gastrointestinal oral ultrasoundagent in phase-one trials, and FS069, a second-generation myocardialperfusion agent awaiting Food and Drug Administration approvalto begin phase-one studies (SCAN 7/27/94).

Earlier last month, MBI posted results for its third quarterof 1995 (end-December). The company recorded a net loss for thequarter of $2.2 million, compared to a net loss of $1.1 millionin the same period a year ago. MBI's revenues were $6.9 million,compared to $5.5 million in the third quarter of 1993. MBI's marketingpartner Mallinckrodt Medical began selling Albunex in the U.S.in October (SCAN 8/31/94).