SOURCE: DOV Pharmaceutical, Inc.

March 03, 2008 16:46 ET

DOV Pharmaceutical, Inc. Announces Successful Restructuring of Office Lease

Reduces Future Obligations From $24.2 Million to $1.2 Million

SOMERSET, NJ--(Marketwire - March 3, 2008) - DOV Pharmaceutical, Inc. (OTCBB: DOVP) announced that it has completed another significant aspect of its restructuring plan by reducing the term of its office lease to January 2009 from February 2016, as well as reducing its monthly payment obligations to $100,000 from approximately $250,000. As a result of the lease restructuring, the $24.2 million lease obligation is now reduced to $1.2 million. In exchange, the Company has released its $4.2 million security deposit, thereby reducing long-term restricted cash on its balance sheet to zero.

The amendment of the lease represents another significant step in a corporate restructuring that began in October 2006 when the Company's Board of Directors adopted a revised strategic plan. Under this plan, the Company has focused on continuing its Phase I/II clinical and preclinical research programs for the development of drugs to treat neuropsychiatric disorders, advancing the Company's later-stage drug development programs through external partnerships and collaborations, and reducing operating costs wherever possible and restructuring debt so as to optimize the Company's financial position. Since that time, the Company has made demonstrable progress on each of these initiatives, including the following:

--  Completed an eight-week safety and tolerability study with DOV 21,947.
    This study demonstrated that, at doses predicted to be antidepressant, DOV
    21,947 is safe and well-tolerated and produces weight loss and plasma
    triglyceride reductions in drug-compliant subjects
--  Initiated a Phase II clinical study with DOV 21,947 in patients with
    major depressive disorder
--  Identified an IND candidate from its preclinical uptake inhibitor
    portfolio
--  Partnered bicifadine with XTL Biopharmaceutical, Inc.,  which has
    reported that it expects to complete a Phase IIb trial in patients with
    diabetic neuropathic pain in the fourth quarter of 2008
--  Partnered DOV diltiazem with Blue Note Pharmaceuticals, Inc. which has
    embarked on a Phase 3 development program expected to culminate in a
    505(b)(2) NDA filing for use in the treatment of hypertension and angina at
    the end of 2009
--  Exchanged $70 million of debt for equity and cash
--  Reduced core operating burn to approximately $6 million annually
    

"With the completion of this lease restructuring, we believe we now have the cash necessary to fund operations through March 2009 and through the expected completion of the Phase II clinical trial with DOV 21,947 as well as the Phase IIb clinical trial of bicifadine which could generate a $6.5 million milestone payment to us," said Barbara Duncan, Chief Executive Officer of DOV. Commenting further, Ms. Duncan noted, "This has been an extremely challenging 18 months. The most difficult aspect of this restructuring has been the loss of very talented and loyal employees. However, we believe we have now restored financial stability to the Company and re-focused on exploiting our earlier stage clinical and preclinical assets, which will underpin the future growth of DOV and reestablish the Company as a leading innovator in the development of novel CNS compounds."

About DOV

DOV is a biopharmaceutical company focused on the development of novel drug candidates for disorders of the central nervous system. The Company's product candidates address some of the largest pharmaceutical markets in the world including depression, pain and insomnia.

Cautionary Note

Statements in this press release that are not historical facts constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. You can also identify forward-looking statements by the following words: may, will, should, expect, intend, plan, anticipate, believe, estimate, predict, potential, continue or the negative of these terms or other comparable terminology. We caution you that forward-looking statements are inherently uncertain and are simply point-in-time estimates based on a combination of facts and factors currently known by us about which we cannot be certain or even relatively confident. Actual results or events will surely differ and may differ materially from our forward-looking statements as a result of many factors, some of which we may not be able to predict or may not be within our control. Such factors may also materially adversely affect our ability to achieve our objectives and to successfully develop and commercialize our product candidates, including our ability to:

--  raise substantial additional capital in order to fund operations;
--  obtain and maintain all necessary patents, licenses and other
    intellectual property rights;
--  demonstrate the safety and efficacy of product candidates at each
    stage of development;
--  meet our development schedule for our product candidates, including
    with respect to clinical trial initiation, enrollment and completion;
--  meet applicable regulatory standards and receive required regulatory
    approvals on our anticipated time schedule or at all;
--  meet or require our partners to meet obligations and achieve
    milestones under our license and other agreements;
--  obtain and maintain collaborations as required with pharmaceutical
    partners; and
--  produce drug candidates in commercial quantities at reasonable costs
    and compete successfully against other products and companies.
    

You should also refer to the risks discussed in our filings with the Securities and Exchange Commission including those contained in our annual report on Form 10-K for the fiscal year ended December 31, 2006 that was filed on March 30, 2007 and our quarterly reports on Form 10-Q that were filed on May 15, 2007, August 8, 2007 and November 7, 2007. We qualify all our forward-looking statements by these cautionary statements. Readers should not place undue reliance on our forward-looking statements. We do not undertake any obligation and do not intend to update any forward-looking statement.

Contact Information

  • Contact info:
    DOV Pharmaceutical, Inc.
    Investor Relations
    732-907-3600
    Email Contact