Maxygen is joining the list of biotech companies hunkering down in an effort to hold on to cash. The developer says it will cut close to a third of its payroll and reduce staff to 65 as it hunts for a partnership for a key program. Investment bank Lazard has been brought in for a strategic review and Maxygen is reducing spending on MAXY-G34, a new therapy for chemotherapy-induced neutropenia.
Maxygen does have plenty of money on hand, though. The Redwood City, CA-based biotech says it will have $200 million available at the end of this year and plans to budget $17 million in expenses for next year.
A Phase IIa trial of MAXY-G34 in breast cancer patients is currently being completed and Maxygen says it will produce detailed data by the end of the year.
"Although the preliminary Phase IIa data are encouraging, we do not believe it practical for Maxygen to take the MAXY-G34 program forward without a partner," said Russell Howard, CEO of Maxygen. "The uncertainty of partnering, the cash required for continuation of the program, and the current financial environment have together led us to the difficult decision to significantly reduce spending."
- check out Maxygen's release
- read the story in the San Francisco Business Times