NEUROCRINE BIOSCIENCES LAYS OFF SALES STAFF

Troubles continue for Neurocrine Biosciences in the wake of a regulatory delay of the insomnia drug indiplon as the company announced it is eliminating its sales staff.

"Despite our best efforts, we have not been successful in acquiring a product which our sales force could promote," President and CEO Gary Lyons said in a statement. The company estimated the move will save $16 million this year.

In May, Neurocrine received a not approvable letter for the 15-mg extended release tablet and an approvable letter for the 5-mg and 10-mg immediate release doses of indiplon. The outlook worsened in June when the company announced that, in order to respond to the FDA's requests for more information, it might have to perform additional preclinical and clinical studies.

In addition, last month Pfizer informed Neurocrine it was pulling out of the collaborative agreement to develop and promote indiplon, continuing to support the effort only for 180 more days. At the time, Lyons said the company is committed to developing and commercializing the drug.

Neurocrine's stock price has declined more than 80 percent since it received the letter from the FDA.