CV Therapeutics Cuts Costs

On Thursday, CV said its "optimized sales alignment" eliminated or consolidated a number of unprofitable territories, so most new territories will be profitable immediately after the reorganization. The company will now have approximately 140 sales territories, compared to approximately 250 sales territories previously.

Overall R&D spending is expected to be reduced by almost 20%, or $15 million to $20 million on an annual basis. This focused R&D budget will allow the company to continue pursuing several promising programs, while delaying, scaling-back or potentially partnering some early stage preclinical programs. These R&D reductions are in addition to the $30 million annual reduction in R&D spending compared to 2006 levels that were previously announced.

In conjunction with the reduction in operating expenses, the company expects to record $16 million to $20 million in one-time expenses and charges in the second quarter of 2007.