Following the FDA's demand for a new trial of its experimental antibiotic oritavancin, Cambridge, MA-based Targanta is restructuring and cutting 86 employees, or 75 percent of the company's total workforce. Chief Development Officer, Pierre Etienne, M.D., Chief Commercial Officer, Mona Haynes, and VP of Operations and Roger Miller, will be leaving the company as part of the restructuring. Just 27 employees will remain.
Targanta says the layoffs will help the company conserve its cash while it pursues approval of the drug in the EU. The company will be developing a protocol for another Phase III study of oritavancin for the treatment of complicated skin and skin structure infections (cSSSI) in order to satisfy the FDA's concerns about the drug. Last week, the agency questioned both the safety and efficacy of the drug, raising concerns about increased risks of septic shock and death.
"Targanta has transitioned from a company preparing for the commercial launch of its lead drug candidate to a late-stage clinical development company since receiving the FDA's Complete Response Letter to our NDA for oritavancin," explained Mark Leuchtenberger, President and CEO of Targanta.
Cuts will be made swiftly; Targanta says it anticipates completing the majority of the plan by the end of this month.
- here's Targanta's release