3. Restructuring

On September 1, 2011, the Company announced a restructuring plan designed to focus the Company’s capital resources on its most promising early-stage clinical programs and further reduce its cash utilization. In connection with this restructuring, the Company recognized approximately $721,000 of research and development restructuring expenses and approximately $425,000 of general and administrative restructuring expenses in the quarter ended September 30, 2011. The restructuring expenses include severance payments, health and medical benefits and related taxes, which are expected to be paid through the end of fiscal 2012.

The following table sets forth the components of the Company’s restructuring for the three-month period ended September 30, 2011 (in thousands):


			Amounts Paid Through			Amounts Accrued as of
	Charges		September 30, 2011			September 30, 2011
General and Administrative Employee severance and related costs	$	425	$	(21	)	$	404

Research and Development Employee severance and related costs		721		(12	)		709

Total restructuring	$	1,146	$	(33	)	$	1,113