An Evanston blood substitute producer has laid off most of its staff and faces an uncertain future, the company said Friday. Last month, the Food and Drug Administration denied approval for the company’s sole product, PolyHeme.
Northfield Laboratories Inc., 1560 Sherman Ave., has been developing the blood substitute for more than 20 years. PolyHeme lasts far longer than blood and is compatible with all blood types, the company has advertised.
Although studies have shown PolyHeme to be less safe than blood, Northfield said it could save lives in war zones and other remote areas where other transfusions are not available.
Northfield received good news from the FDA in December, when the agency said it would either approve or deny PolyHeme by the end of April. At the time, the company had only enough money to keep operating through May, the Chicago Tribune reported.
Northfield stock prices jumped 130 percent after the announcement.
But when the FDA reported its findings in April, the agency refused to grant Northfield approval to begin marketing PolyHeme. The FDA told the company “the risk:benefit assessment of the product in trauma is unfavorable,” Northfield said in an April 30 press release.
On April 9, Northfield announced it lost $6.3 million dollars in the third quarter of the 08-09 fiscal year. The company lost $4.8 million in the same quarter of the previous year.
In a press release Friday, Northfield announced the dismissal of nearly all of its employees.
The company stopped short, however, of saying it was closing entirely.
“The company is evaluating future options,” it said.
