Emeryville, CA-based BioNovo said today that, like so many other biotech companies, it will cut costs and staff "given current market conditions and the status of the financial markets." The company, which markets women's health and cancer therapies, is cutting about 15 percent of its staff. BioNovo will freeze the salaries of remaining employees and recommend to the Board of Directors that execs not receive their management bonuses for 2008. In addition, the company will halt work on preclinical drug candidates so it can focus on drugs in the clinic, search for partnerships or investors as sources of capital.
"While there has been excellent performance by the company--and by the executive management--we can not ignore the current economic conditions and the need to conserve cash, while still moving key programs ahead in our current regulatory environment," said David Naveh, a member of Bionovo's Board. Added CEO Isaac Cohen: "While the stock market and our stock price have been on a downward slope, the company's business and scientific activities have most definitely been on an upward slope. We have accomplished so much, but there is a disconnect between stock price and value creation.
- here's BioNovo's release