CV Therapeutics Cuts Costs

CV Therapeutics (CVTX Quote) said a cost-cutting plan should trim its operating expenses over the next four quarters by $75 million.

The Palo Alto, Calif., biotech said it has made cuts in field and headquarters personnel but didn't offer a number. The company said it has cut overhead, reduced research and development spending and engaged in a "significant optimization of the company's field sales organization."

CV said the moves will cut its expense guidance over coming quarters to a range of $200 million to $210 million from the previous $275 million to $285 million. The move comes just a week after activist investor Third Point took a 9.9% stake in the company.

"Based on the results from the Merlin Timi-36 study and our historical Ranexa revenue trend, we believe that the difficult but necessary action we have taken to significantly reduce our operating expenses improves the company's potential to begin generating profits sooner, by allowing us to maximize the potential upside of future revenue growth, new potential indications and partnership opportunities with Ranexa, regadenoson or our other pipeline products," said CEO Louis G. Lange.

Shares of CV fell 32% in a single day back in March after the company said the Merlin Timi-36 study of its ranolazine drug didn't meet its primary efficacy endpoint but did show that the drug is safe.