A mystery bidder has pulled out of buyout talks with the UK's Renovo and the anti-scarring drug developer has responded by laying plans to slash more than a third of its staff of about 180. The developer says that its restructuring will allow the University of Manchester spin-out to continue to focus on Juvista, Adaprev and Prevascar.
"The restructuring will concentrate Renovo's activities on supporting the clinical development programs, together with managing and partnering Renovo's products and IP assets," the company said in a statement. "As a consequence the company will commence discussions and statutory consultation with employees which may lead to a reduction in the headcount of the organization by just over one third."
Earlier this week CSO Dr. Sharon O'Kane, one of the founders of Renovo, announced his plans to resign and begin new work advising biotech start-ups. The cuts announced today are designed to bring down Renovo's operatings costs by 30 percent. "Although painful, these measures will maximize our financial flexibility as we focus on Juvista gaining approval in Europe and on other future growth opportunities," says CEO Mark Ferguson.
- here's the press release
- read the story from Crain's Manchester Business