Rigel Pharmaceuticals has cut 20 percent of its staff and shelved some of its research work while opting to delay any partnership talks until it gets crucial Phase IIb data on its rheumatoid arthritis candidate, R788. Rigel says the data should arrive in July or August, and the developer is clearly expecting a much-needed positive report.
"The company expects that these results, involving approximately 650 additional patients, will substantially further the understanding of R788's potential and may therefore drive enhanced economics in a possible deal," the South San Francisco-based company said in a statement. This measure is intended to maintain the company's emphasis on its active preclinical and clinical programs, while conserving the company resources,"
Rigel executives add that they expect a partnership deal ahead of Phase III. Out the door go 36 employees as Rigel puts virology and cancer work on the shelf. At the end of 2008 Rigel reported $134.5 million in cash and securities.
"Rigel has been blessed with a prolific research organization whose members are dedicated and talented professionals. However, we have come to the point in time, where we can no longer continue to support all of the programs we have generated," said CEO James M. Gower. "The company needs to focus on moving our most advanced projects forward, including, in the case of R788, potentially into Phase III clinical trials."
- here's Rigel's release
- check out the AP report
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