Simon Pedder, founder and chief executive officer of Chelsa Therapeutics (Nasdaq: CHTP), resigned Tuesday as part of the company’s reorganization.
Chelsa is also laying off an unspecified number of employees.
A month ago, Chelsea executives took a 25 percent pay cut.
The company has decided to focus resources on gaining marketing approval for its drug Northera, which is seen as a treatment for some symptoms of Parkinson’s disease.
Chelsa will save “at least” $3.5 million in salaries through the cuts, the firm said.
Joseph Oliveto, Chelsea’s vice president of operations, was named interim CEO.
Pedder will continue to serve as an advisor to the company, Chelsa said.
Board member Michael Weiser is the new chairman. Two other board members left, and the previous chairman, Kevan Clemens, stepped down as chairman but remains on the board.
“Chelsea Therapeutics has faced tremendous challenges in moving Northera forward through the regulatory process, making these difficult decisions necessary to ensure stockholder value is preserved in the short term and can be built over the long-term,” Weiser said in a statement. “We believe that this reorganization should allow the Company’s resources and capital to be laser-focused on efficient conclusion of the 306B study and the evaluation of next steps in the regulatory process. In tandem, the Board plans to explore and evaluate all available strategic options to determine the best path forward in the long-term strategic interests of the Company and its stockholders.”