Oncothyreon sells drug rights, cuts jobs

Merck KgAA is paying $13 million for manufacturing rights to Oncothyreon's experimental lung cancer vaccine Stimuvax. Merck already owns the commercialization and development rights to the lung cancer drug. As part of the deal Merck will take over Oncothyreon's manufacturing plant in Alberta, Canada. Eight employees will be let go and another two are retiring.

Oncothyreon says that it plans to restructure the company, but this is one restructuring that will actually result in the creation of more jobs in the Seattle area as the company closes other sites and transfers jobs. Oncothyreon will focus on developing two oncology drugs, PX-478 and PX-866. Phase I trials of the drugs nearing completion and Phase II trials are expected to start in 2009. In addition to selling its Alberta ops, the company will close its Tuscon, AZ plant and either move those jobs to Seattle or outsource them. The company anticipates having 25 employees in the Seattle area as of next year--double what it has now.

"Our goal with these changes is to create a sustainable team intensely focused on our clinical development activities," added Dr. Kirkman. "By concentrating our activities in a single location with a team solely focused on clinical development activities, we believe we will position Oncothyreon for success in the current challenging environment. We are very grateful for the dedicated service over many years of those who will be leaving Oncothyreon."

- here's the release [1]
- see this report for more [2]

Related Articles:
Oncothyreon files IND for PX-866 [3]
Nasdaq warns Oncothyreon [4]