Sphinx now faces a pipeline gap

Sphinx Pharmaceuticals Inc.'s decision to make major spending cuts should help rein in the company's burn rate and points to areas where cash-strapped biotech companies could make trims. But SPHX still has less than two years of cash and a pipeline of two products in early- to mid-stage clinicals, programs in early research, and nothing in between.

The company announced last week that it will reduce fiscal 1994 operational expenditures by about $8 million and has reduced its staff by 29 percent to 139 employees. SPHX has more than $40 million in cash, down from $50.7 million as of March 31. For the nine months ended March 31, the company posted a net loss of $16.4 million...