restructuring

Nventa slashes staff, looks for M&A deals

John Carroll — Thu, 09 Oct 2008 10:32:08 -0400

San Diego-based Nventa Biopharmaceuticals is whacking eight of its 13 staffers as it ratchets back its expenses and stays focused on advancing its lead therapies. Out the door go Richard B. Lai Fatt, Ph.D., vice president of corporate development, and David Duncan, Jr., vice president of finance. It's all part of a restructuring aimed at reducing the company's cash burn rate by 30 percent. And the developer says that it will look for M&A opportunities to help bolster its finances.

"We are committed to the continued advancement of HspE7, Hsp 6/11 and Poly-ICR, and as such, we are making difficult yet necessary decisions today to ensure these products have every opportunity to succeed," said Gregory M. McKee, president and chief executive officer at Nventa. "As part of our commitment to the continued advancement of HspE7, Hsp 6/11 and Poly-ICR, we are aggressively seeking strategic alliances, including merger and acquisition opportunities, which will allow us to realize the greatest value for each of these important programs."

Nventa says it had $5.9 million at the beginning of October, enough money to reach the second quarter of next year.

- read the Nventa release

Memory Pharma slashes over half its workforce

John Carroll — Thu, 18 Sep 2008 11:26:09 -0400

Memory Pharmaceuticals is slashing more than half of its workforce as it restructures and focuses on clinical development. Half of those jobs will be cut immediately with the other half coming over the next six months.

In a release, Memory said that the realignment would leave the company able to support "ongoing and expected trials for its clinical-stage drug candidates." As part of the restructuring, the vice president of business development, Michael P. Smith, will take over as CFO.

"We are committed to the advancement of our pipeline, and this decision will ensure that we have the resources and human capital to execute our development strategies for our partnered and proprietary programs," stated CEO Vaughn M. Kailian. "We are focused on advancing our candidates through key clinical trials, such as our Phase II development program for MEM 3454 in cognitive impairment associated with schizophrenia and our Phase I program for MEM 63908, both of which are partnered with Roche. In addition, we look forward to initiating a Phase IIa trial for our lead PDE4 inhibitor, MEM 1414, commencing a Phase 1 program for MEM 68626, and continuing to collaborate with Amgen on the development of PDE10 inhibitors."

- read the Memory Pharmaceuticals release

ALSO: In a separate announcement, Memory Pharmaceuticals announced that it has amended its nicotinic alpha-7 receptor agonist agreement with Roche to expand the Phase II development program for R3487/MEM 3454 in cognitive impairment associated with schizophrenia. Roche will provide funding to Memory Pharmaceuticals, in advance, for all costs associated with the increase in enrollment and will accelerate a portion of the $17 million payment associated with the completion of the Phase II CIAS trial. Release

ACT streamlines, cuts costs

Maureen Martino — Tue, 09 Sep 2008 11:09:59 -0400

Advanced Cell Technologies is restructuring. The company has been on the rocks since it saw stock prices nosedive in July on news that the company didn't have enough funding to continue operations. Now the Worcester, MA-based stem cell company is looking to save $5 million to $6 million a year in operating costs by streamlining and focusing on its most advanced clinical program. As part of the process, ACT has not renewed its Alameda, California sublease and has vacated its Charlestown, Massachusetts facility. ACT will be looking for a partner on its preclinical programs in retinal disease and the manufacturing of red blood cells. It is also on the hunt for funding for a Phase II Trial for its Myoblast program.

"We believe in this challenging capital market environment that it is prudent to focus on our most advanced clinical programs," stated William M. Caldwell IV, Chairman and CEO of ACT. "These cost reduction activities and successfully implementing our partnering/licensing strategy should afford the Company the ability to allocate funding to further develop its later-stage clinical programs while significantly reducing its cash utilization for developmental activities. Near term funding continues to be our major challenge."

- see ACT's release

ALSO: The Defense Advanced Research Projects Agency--a key player in biomedical research--has begun a blood pharming project that will explore just how feasible it would be to produce an unlimited supply of blood. The work has been pioneered by Advanced Cell Technology. Report

Anesiva axes staff, preclinical work in restructuring

John Carroll — Wed, 03 Sep 2008 11:08:16 -0400

Anesiva is axing its preclinical development program as well as other "non-core positions" and reducing its head count by 20 percent as it restructures to focus on late-stage products and sales as the company makes its transition to a specialty pain management company. The South San Francisco biotech is also announced that it completed enrollment in two Phase III Adlea trials. Top-line data is expected in the fourth quarter.

"Since joining Anesiva in mid-June, I have conducted an extensive review of our programs, priorities and core competencies, which confirms my confidence in the underlying strength of our assets--namely our people and pipeline," said Michael L. Kranda, president and CEO. "Based on this review we are refining our strategy and restructuring operations to drive the company toward long-term success."

- check out Anesiva's release
- read the report from StreetInsider

Related Articles:
Anesiva inks $114M licensing deal

Ailing GlaxSmithKline to axe 350 R&D workers

John Carroll — Wed, 11 Jun 2008 11:11:45 -0400

In an effort to shake up an organization that has produced few major advances recently, GlaxoSmithKline announced plans to axe 350 jobs in its R&D operations. The cuts--part of a major restructuring announced last fall--will terminate staffers at three labs in the U.S., Italy and Germany. The cuts inside GSK reflect the new CEO's strategic move to look outside the company for innovations in drug technology. That's a move that has benefited biotech companies with a lineup of new, big-dollar collaboration deals.

"These changes are part of GSK's longer-term strategy to ensure that we invest in key areas of future growth and evolve our business to compete effectively in what is a rapidly changing and challenging environment for pharmaceutical companies," a spokesperson told the Wall Street Journal.

You can expect more changes ahead. Glaxo signaled that it's restructuring its research activities into smaller teams and changing its incentives to reward innovation or punish failure. One of those punishments evidently includes a pink slip.

- read the article in the Wall Street Journal

Novartis restructures its development strategy

Tue, 20 May 2008 06:59:56 -0400

Novartis CEO Daniel Vasella (photo) tells the Wall Street Journal that he knew Novartis had become too big and too bureaucratic when one of the company's top scientists expressed delight at finally meeting him. So he's set out to reconstruct the drug giant he built, with a particular emphasis on drug discovery.

At the top of the pipeline: two meningitis vaccines that could become blockbusters. And the new pharma chief--Joe Jimenez--is breaking up investigators into small teams so they can go one on one with regulators to see if they should move ahead with a development program.

- read the article from the Wall Street Journal

Going, going... Trimeris winds down ops

Mon, 12 May 2008 06:59:57 -0400

Faced with a patent fight that has frustrated efforts to find a buyer, Trimeris has begun to hand back out $80 million in cash as it winds down its operations. The Trimeris board has authorized returning $50 million to shareholders by the end of the year, and analysts note that all but 10 workers have been let go. Once brimming with potential, Triangle has put its lab up for lease and spun out its R&D work.

"We believe this is consistent with the goal of returning value to investors," said Martin Mattingly, Trimeris' fourth CEO in a year. Analysts told the News & Observer that the recent moves would likely most benefit the company's large institutional investors. Biotech analyst Sharon Seiler said the company should disappear in about a year.

- check out the report from the News & Observer

Esperion gets second shot as an independent drugmaker

Mon, 05 May 2008 06:59:55 -0400

After getting squashed in Pfizer's restructuring crunch, Esperion Therapeutics is reopening this week. The company, which specializes in cardiovascular and metabolic disease work, is hiring about 10 researchers from Pfizer and Esperion. Esperion was shut down last year during Pfizer's restructuring, a move that affected about 60 people working for the company, which was acquired in 2003. Aisling Capital, Alta Partners and Domain Partners are providing more than $22 million to re-start the venture, with Pfizer holding on to a stake.

Michigan officials count the reopening as a hopeful bright spot following Pfizer's decision to shutter its Ann Arbor R&D facility, which employed 2,100 people. CEO Roger Newton was cautious about describing the developer's plans, but says he expects to do some more hiring. He also told Crain's Detroit Business that Esperion has gained "control of a series of compounds and will pursue development of a small molecule that inhibits the creation of fatty acid and cholesterol synthesis."

- read the article from the Detroit News
- check out this report for more

Valeant chops workforce in restructuring

Fri, 02 May 2008 06:59:57 -0400

In an effort to bring expenses in line with revenues, Valeant is cutting 130 workers in the U.S. and Mexico. In addition, headcount will be further reduced by 1,250 positions as it divests its European subsidiaries. The full effects of the layoffs will be felt within the next year. The layoffs will reduce Valean's staff by about half.

"This is the first step in our plan to right size our company and return it to appropriate levels of profitability," said J. Michael Pearson, chairman and chief executive officer. "We understand the impact these changes will have on our employees and we are committed to treating everyone with respect and dignity. While difficult, these changes are in the best interest of the company to generate meaningful change that will produce long-term value."

- here's Valeant's release

Novartis CEO: Deals possible in diagnostics, vaccines

Mon, 14 Apr 2008 06:59:55 -0400

Novartis AG CEO Daniel Vasella (photo) concedes that his company is going through a rough stage, but insists that a robust pipeline of new therapies will lead the drug giant to better days. In an interview with the Swiss weekly Sonntag, Vasella said Novartis' recent deal to buy a stake in Alcon for $11 billion represented a move to diversify the business. And more deals may lie ahead.

"Medium-sized acquisitions, which are not planned at the moment, would certainly still be possible," Vasella told the pub. "Diagnostics is a business field worth expanding, so are vaccines and generics."

Alcon, meanwhile, plans to build a manufacturing facility in Singapore to supply pharmaceuticals to the Asian market. Singapore has been swiftly growing as a manufacturing hub for the region.

- read the AFX report

Related Articles:
Vasella touts Novartis' diversification. Vasella report
Novartis taps new U.S. pharma chief. Novartis report
Novartis discovery chief departs in shakeup. Novartis report
CEO: Novartis plans big restructuring. Novartis report
Novartis pledges $39B for Alcon. Novartis report
Cash-rich Novartis CEO mulls biotech buyouts. Report

Keryx triggers big shakeup to counter trial fiasco

Mon, 07 Apr 2008 06:59:58 -0400

Less than a month after seeing its lead drug candidate go down in flames in a late-stage trial, Keryx Biopharmaceuticals announced plans to restructure, chopping its work force in half as it reduces the company's burn rate. Keryx announced that it will have 25 full- and part-time workers when the restructuring is complete.

Keryx's plans include continuing R&D for Zerenex but cutting 12 of 20 early-stage trials of KRX-0401, delaying a late-stage trial of KRX-0401, terminating a licensing deal and closing offices in San Francisco and Memphis as well as its manufacturing site in Wisconsin. And in pursuit of new capital, Keryx has begun to hunt out new partnerships, strategic alliances and "product-specific financing alternatives." Keryx ended the first quarter of this year with about $50 million.

Keryx's troubles crystallized last month with the late-stage failure of the diabetes drug Sulonex. Sulonex, which Keryx dumped at the end of March, worked no better than a placebo in a pivotal clinical trial.

- check out the press release

Related Articles:
Keryx shares in meltdown after late-stage failure. Report
Keryx inks $100M deal with Japan Tobacco. Report
Keryx sells shares. Report
Keryx drug best at low dose. Report

Novartis discovery chief departs in management shakeup

Thu, 20 Mar 2008 07:59:56 -0400

Restructuring under the gun of new generics and after being slammed by regulatory defeats, Novartis is bidding adieu to James Shannon, its chief of global drug development. In his place Novartis has appointed Trevor Mundel and Andrin Oswald. Shannon's departure comes soon after Alex Gorsky decamped from his post as head of North American pharmaceuticals to take a job at J&J. Novartis provided little cover for Shannon's departure. A spokesperson said she had no idea what Shannon was planning to do next. Novartis has been reorganizing since the constipation drug Zelnorm was withdrawn and its diabetes pill Galvus was delayed.

- read the report in the Wall Street Journal

Related Articles:
Novartis' Gorsky to return to J&J. Report
U.S. CEO exits Novartis. Report
CEO: Novartis plans big restructuring. Report
Lagging sales spur Novartis layoffs. Report

Kosan axes staffers (again), scouts for partners

Wed, 19 Mar 2008 07:59:57 -0400

Kosan Biosciences is laying off more than a third of its 91 workers as the developer concentrates its resources around its lead cancer therapies in a restructuring that has also shuffled its newly appointed president into the CEO's post. Altogether 31 workers are being pink slipped, and Kosan says it may seek out partners among developers looking for early-stage prospects. This isn't the first cutback at Kosan. A year ago the Hayward, CA-based developer slashed 39 jobs and reduced its payroll to 80.

"We believe that this restructuring will strengthen our ability to effectively manage our resources, execute on our development goals and advance our high-value, near-term commercial opportunities," said Helen Kim, the new CEO. Kim joined Kosan as a senior VP in January and was named president last month.

Kosan will circle the wagons around its lead clinical programs: tanespimycin in multiple myeloma and in metastatic breast cancer, and epothilone KOS-1584 in non-small lung cancer.

- read Kosan's release for more
- check out the report from the East Bay Business Journal

Related Article:
Roche drops out of Kosan development deal. Report

PDL axes 260 and takes itself off the market

Wed, 05 Mar 2008 06:59:57 -0500

With no "firm" buyout offers coming in, PDL BioPharma has decided to axe 260 workers--on top of the 320 layoffs already announced--and take itself off the market. The latest restructuring round follows the sale of a half billion dollars worth of assets. And after the new pink slips are delivered, PDL will have about 300 workers, a fraction of its peak of 1,100. PDL put itself up for sale last fall after coming under withering fire from investors for its financial performance. To help win back the favor of investors, who drove down the company's share price 28 percent this morning, a four-year low, PDL is considering giving shareholders 50 percent of the royalties coming from approved products.

- see this release
- here's the AP report

Related Articles:
PDL sells off drugs as it counters harsh criticism. Report
PDL BioPharma puts out 'for sale' sign. Report
In last act, PDL chief takes out the axe. Report
PDL chief resigns in wake of investor wrangle. Report
Biotech CEOs face rising fury of angry investors. Report
PDL BioPharma rises on shareholder complaint. Report

Coles leaves NPS to take reins at Onyx

Tue, 26 Feb 2008 06:59:54 -0500

There's another game of musical chairs in biotech today. NPS Pharmaceuticals President and CEO Tony Coles is moving to take the reins at Onyx Pharmaceuticals. Onyx CEO Hollings Renton had announced plans to retire last October. He steps out officially at the end of March. NPS COO Francois Nader, meanwhile, is stepping up to the Coles' position. Nader joined NPS in 2006 and was promoted to COO last year.

- see this release
- read the AFX report

ALSO: Richard Eno was named CEO of Metabolix. Release

Related Articles:
NPS pockets $30M, parts ways with AstraZeneca. Report
Analyst puts NPS Pharma under microscope. Report
NPS sells drug rights. Report
NPS halves workforce in restructuring. Report

Vernalis may be in play after dramatic reorg

Wed, 20 Feb 2008 06:59:56 -0500

The UK's Vernalis saw its shares shoot up after the drug developer announced a dramatic restructuring that will eliminate more than half of its work force and put significant parts of its business up for sale. Out the door goes CEO Simon Sturge as Vernalis' U.S. operations and lead drug Apokyn go on the sales block. Analysts immediately began to speculate that the restructuring may put the company in play, with a buyer moving in to take control. New money is needed to meet its obligations to Endo Pharmaceuticals on the migraine drug Frova. Last October the FDA dealt a major blow to Vernalis when it rejected the company's application for another indication on Frova. Vernalis is contesting the decision. Vernalis' executive chairman Peter Fellner told Thomson Financial that the company has enough cash to continue operations for two years and was selling off further assets to beef up its cash stake.

- here's the release
- read the report in Hemscott

Related Articles:
Endo, Vernalis get FDA rejection for Frova. Report
Vernalis reports "striking" weight loss in trial. Report
Vernalis acquires Cita, adds drugs to pipeline. Report

Neurogen cuts 70 jobs in restructuring

Wed, 06 Feb 2008 06:59:56 -0500

Neurogen is slashing 70 jobs in a restructuring that will focus company assets around its clinical programs. The drug developer is focused on insomnia, Parkinson's disease, restless legs syndrome and pain. Neurogen announced Monday that its president, Stephen R. Davis, had been appointed chief executive officer at the biotechnology company.

"As our clinical portfolio advances, we must allocate our resources to facilitate this growth," said Davis. "Our insomnia program holds the potential for significant differentiation and increased value as we seek to expand on the clinical profile we have seen thus far, suggesting improved objective and subjective measures of efficacy over currently available insomnia drugs. Aplindore remains on track for the commencement of Phase 2 studies in both Parkinson's disease and Restless Legs Syndrome."

- check out the release

Trimeris' shareholder calls for sale of developer

Tue, 05 Feb 2008 06:59:55 -0500

Once one of the Triangle's most promising drug developers, Trimeris' largest shareholder is demanding that the company drop just about everything and focus on selling itself. "We are not in favor of strategic transactions other than those involving a sale of the business," wrote HealthCor in a letter dated Feb. 1. To make that point as clear as possible, HealthCor is asking for two seats on the board of directors. Trimeris' AIDS drug Fuzeon had been touted as a big seller, but disappointing sales punctured the optimism.

- read the article from the Charlotte News & Observer

Related Articles:
Trimeris to axe R&D ops in '08 restructuring. Report
Novartis sues Trimeris for patent infringement. Report
Trimeris cuts jobs, focuses on revenue. Report

IDM outlines big layoff in restructuring plan

Wed, 16 Jan 2008 06:59:57 -0500

Two weeks after it was jilted in a key drug collaboration deal, IDM Pharma filed papers with the SEC saying it will lay off 60 percent of its workers at core facilities in Paris and Irvine, CA. IDM--which is based in Irvine--had already announced plans to restructure as it shelved a development program for the melanoma drug Uvidem and ratcheted back on its work regarding L-MTP-PE for osteosarcoma. The restructuring should be done earlier this year.

There's still no exact figure, though, on how many IDM workers will get a pink slip. IDM announced at the end of December that Sanofi-Aventis had decided to pull out of a partnership on Uvidem, leaving all rights for the drug with IDM.

- check out the AFX report for more info
- see this release for more

Related Articles:
IDM shares plunge on FDA's rejection. Report
IDM Pharma gets new CEO as founder departs. Report

2007: A year in review

Fri, 21 Dec 2007 06:59:59 -0500

Loyal readers of FierceBiotech are well aware of just how big a year the industry has just posted. Deals were up as new licensing pacts, venture rounds and mergers dominated the news. The restructuring of Big Pharma focused a spotlight on the emerging role of biotechnology in the discovery of important new therapies. Asia and Europe took steps to play a leading role in pipeline work. And scientists the world over made significant strides in often controversial fields.

The globalization of biotechnology and the increasing importance of biologics in drug discovery are not short-term phenomena. These are trends that will continue to dominate an industry that is moving steadily in a new direction. And we'll be here in 2008 to chronicle it all.

Which makes this a good time to take a break. We'll be back on January 2 to pick up where we left off. Nearly 100,000 subscribers around the world have signed up for FierceBiotech, FiercePharma, FierceBioResearcher and our new pub, FierceVaccines. And we're expecting another notable year in '08. - John Carroll