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Prolinx Trims Staff by Half, Suspends Some Marketing to Save for Acapella Launch

NEW YORK, Oct. 30 - Prolinx has "drastically reduced" its headcount and frozen some marketing activities as it tries to reel in cash burn and wrap up development of its Acapella technology, the company said yesterday.

 

Some 20 sales, marketing, administrations, and operations staffers--about half of the firm's employees--were let go, according to company spokeswoman Leslie Linkkila.

 

Prolinx also is "suspending active marketing of virtually all our products" except its Acapella system. Linkkila stressed that the move will not affect any of the company's distribution agreements.

 

"We see this as a period we need to get through to re-establish full, active marketing of our products," said Linkkila. The company hopes to be "out of the woods" by the end of the year, and is "very close" to proving to investors Acapella's reliability, she added.

 

"If we can stand up and say we have all the systems nailed, we believe there will be moneys available to us," she said. Until then, employees "are wearing more hats."

 

Prolinx, based in Bothell, Wash., has four product lines, according to Linkkila. Three of these use the same Versalinx chemical-affinity technology that Acapella uses. The closely held company has temporarily halted marketing the two remaining Versalinx-enabled products.

 

According to Polinx, the Acapella uses label-free surface plasmon resonance-detection technology to analyze molecular interactions. The company claims it can analyze as many as eight samples in real-time without using detection labels.

 

Linkkila would not say what Prolinx's burn rate is, but said the staff cuts and marketing suspensions would reduce the figure by half.

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