Dyax chops 60 jobs after FDA delay

Facing an FDA delay on its lead therapy, Dyax got out the budget-cutting axe and chopped 60 jobs as it scrambled to conserve cash.

The layoffs, which will cut more than a third of its staff, should eliminate about $18 million a year in costs. Dyax says it will take a one-time charge of $2 million in the first quarter.

Dyax's share price went on a roller coaster ride after the FDA announced that it needs to see more information on DX-88, a new therapy to prevent attacks of hereditary angioedema. The company says that the information request will not require a new trial and that the FDA's questions can be answered in a timely fashion.

"Dyax is moving into a new phase of its evolution as a company, going from a research-stage organization to a fully integrated biotechnology company," said CEO Gustav A. Christensen. "It is important that we focus our resources during this transition to ensure our long-term success, particularly as the broader markets work through a period of almost unprecedented global economic dislocation.

- here's Dyax's release
- read the report from the Boston Business Journal

Related Articles:
Dyax shares sink as FDA rejects drug
FDA panel narrowly votes in favor of Dyax drug
FDA staffers question Dyax studies
Dyax shares soar on late-stage DX-88 data
Dyax forges $231M development deal for DX-88