NPS Pharmaceuticals, Inc. (Nasdaq: NPSP) a Utah-based biotech company focused on the development of a new osteoporosis drug has announced a restructuring plan that includes a 53% reduction in staff and a move of the headquarters to New Jersey.The staff reduction is largely a function of the FDA's indication that NPSP's new drug Preos would not likely be approved without more clinical data--even though the drug has been approved in Europe. Without revenue from US sales coming anytime soon, the company will likely need to raise more capital in order to get the drug approved and eventually hit its targets.
The move to New Jersey was driven by a desire to have access to better senior management talent, given that the company has reportedly had trouble attracting top management to Utah.
This is frustrating to an acknowledged Utah-booster. I can't help but wonder if the difficulty in attracting top talent wasn't more closely tied to delays in getting FDA approval for the drug more than the location of the headquarters.
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