Achillion Pharmaceuticals, a clinical stage drugmaker based in New Haven, Conn., will slash its workforce by 20 percent to help offset an $85.2 million loss in fiscal year 2017.
The workforce reduction is expected to save the drugmaker $10 million in 2018. After the job cuts, the company will have approximately 70 employees.
"While it is difficult to undertake a restructuring, we believe through efficient use of our capital, we will have the potential to build significant value in our Factor D inhibitor portfolio," said Achillion CEO Milind Deshpande, PhD.
In the fiscal year ended Dec. 31, 2017, the company reported an $85.2 million net loss, compared to $61.7 million in fiscal year 2016. In addition, the company reported a fourth quarter net loss of $23.2 million, compared to a net loss of $4.4 million the same period a year prior.
The drugmaker's research and development expenses also increased in fiscal year 2017, rising to $65.1 million in comparison to the year prior, which had $59.2 million in research and development expenses.
Achillion attributes the increase in expenses to clinical trial costs for its lead drug, ACH-4471.