Marinus Pharmaceuticals Implements Cost-Cutting Measures Following Phase 3 Setback

Marinus Pharmaceuticals Implements Cost-Cutting Measures Following Phase 3 Setback

Marines PharmaceuticalsA Pennsylvania biotech company is taking drastic action in response to recent challenges faced during a Phase 3 clinical trial, including significant workforce reductions and other cost-saving measures.

The company's decision to lay off about 20% of its staff came as a result of disappointing results from the RAISE trial, which evaluated intravenous ganaxolone as a treatment for refractory status epilepticus (RSE). After an interim analysis that did not meet predetermined stopping criteria, Marinus Pharmaceuticals CEO Scott Braunstein, MD, signaled the need to review potential cost-saving strategies in April.

In addition to reducing its workforce, Marinus Pharmaceuticals is delaying investment in the development of intravenous ganaxolone and halting enrollment in both the RAISE trial and another late-stage study called RAISE II. The Company plans to estimate future growth in RSE based on a review of top-line data from the RAISE trial.

To further improve its financial position, Marinus Pharmaceuticals will implement additional cost reductions in its research and development (R&D) and general and administrative operations. The company's objective is to increase overall performance by making operational changes while remaining focused on its core objectives.

Despite these setbacks, Marinus Pharmaceuticals remains financially stable, with $113.3 million in cash and equivalents as of March. With the cost-saving measures implemented, the company expects to maintain operations through the first quarter of 2025, ensuring continued progress in the commercialization and development of Ganaxolone. The compound, sold under the Ztalmy brand, is approved for the treatment of seizures associated with the rare genetic condition CDKL5 deficiency disorder (CDD) and is also being evaluated in a late-stage TrustTSC trial.

As Marinus Pharmaceuticals navigates these challenging times, its commitment to advancing innovative treatments for neurological disorders remains unwavering. The company's strategic focus on optimizing resources and prioritizing key initiatives underscores its commitment to removing barriers and making meaningful advances in patient care.

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