layoffs

Jazz Pharma axes staffers after delaying two trials

John Carroll — Thu, 12 Jun 2008 10:56:28 -0400

Jazz Pharmaceuticals says it needs to extend the development time line for two key drug programs, a move that triggered a decision to lay off 33 workers, or eight percent of its workforce. In a statement, Jazz also said it is actively hunting out partners for its development programs. The biotech has delayed a planned Phase III of JZP-7 for restless leg syndrome and a planned Phase II trial of JZP-4, in development for epilepsy and bipolar disorder. The layoffs are targeted at the company's R&D and administrative areas.

CEO Samuel Saks said that Jazz is "actively seeking partners for several of our development programs. We have been pleased with the level of interest from potential partners and look forward to completing one or more development partnerships to help us bring these important therapies to the market as quickly as possible."

- check out Jazz's release
- read the AFX story

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

Pharmacopeia cuts 15% of workforce

Fri, 30 May 2008 06:59:57 -0400

In an effort to streamline its business and save cash, Pharmacopeia is laying off 15 percent of its workforce and decreasing "other expenses through improved operational efficiencies and increased financial discipline." The layoffs are part of the company's ongoing effort to focus resources on clinical and later-stage discovery programs.

Earlier this month Pharmacopeia announced positive trial results for PS433540, a hypertension drug. In a statement, interim CEO Joseph Mollica said it was the right time to put more resources towards the drug development. "In order to maximize shareholder value it is essential that we focus our efforts on the programs that can provide the greatest return," noted Mollica. The company is also testing PS433540 as a kidney disease treatment. Pharmacopeia expects the layoffs and other cost reduction efforts to save $10 million in 2009.

- see Pharmacopeia's release

Migenix cuts costs to stretch cash

Tue, 27 May 2008 06:59:55 -0400

Canada's Migenix is cutting its staff in an effort to preserve cash. The company, which is developing the anti-infective drug Omigard, cut six workers, reduced its CEO's salary and downsized its board of directors as it awaits results from a Phase III trial of the drug. Migenix says it's also looking into additional sources of funding as it develops Omigard and another drug, MX-2401.

"We must preserve our cash during this very difficult financial market for biotech companies. With the significant value-driving milestones we expect during the second half of this year and the first half of next year--along with the potential start of Omigard(TM) related revenues--we must take these actions to extend our cash runway as long as possible while continuing to advance our greatest product opportunities," said Migenix's CEO Jim DeMesa.

- check out the release
- read this report for more

Biovitrum AB cuts staff as it restructures R&D ops

Thu, 15 May 2008 06:59:54 -0400

Sweden's Biovitrum AB has restructured its R&D operations, winnowing out about 100 people either through layoffs or by reassigning them to other work. Biovitrum says it will focus on specialist care pharmaceuticals and "is in the process of out-licensing a majority of the company's primary care projects."

- read the Biovitrum release for more info

Palatin slashes staff, dumps research program

Wed, 14 May 2008 06:59:58 -0400

Palatin Technologies is cutting about a third of its workforce and dumping one of its lead development programs--an effort to find a better tolerated successor to sildenafil. After studying research results, Palatin has discontinued development of bremelanotide for the treatment of male and female sexual dysfunction, focusing its research on the therapy for hemorrhagic shock and related indications. Researchers will launch a Phase IIa study of PL-3994 this quarter in patients with controlled hypertension. A Phase IIa study of PL-3994 for acute congestive heart follows next year.

Palatin suffered a serious blow last summer over regulatory questions regarding spikes in the blood pressure of volunteers taking the drug. Its partner in the effort, King Pharmaceuticals, bowed out and Palatin launched a strategic review of its operations. The staff cut will bring the company's head count down to 45.

"Palatin has had a strong and productive research effort focused on two challenging and exciting scientific areas: melanocortin and natriuretic peptide receptors," said CEO Carl Spana. "Concentrating our efforts on value drivers and matching our resources to those projects with the highest potential for near-term success is our immediate priority."

- check out the press release
- read the report

Novacea cuts staff after partner dumps collaboration

Tue, 13 May 2008 06:59:54 -0400

A month after Schering-Plough pulled the plug on its collaboration with Novacea for a new prostate cancer therapy--Asentar--the little biotech company announced that it will cut its work force by more than half. Over the next two months Novacea's head count will dwindle from 37 to 15.

"While we believe the company is in a good financial position, the work force reduction was a very difficult decision for the management team, and we extend our sincere gratitude and appreciation to all of the affected employees," said Chairman and Chief Executive John P. Walker.

- see Novacea's release for more on the cuts
- read the AP report

ALSO NOTED: Novartis buys bigger stake in Alnylam; FDA chastises ZymoGenetics' marketing campaign;and much more...

Thu, 08 May 2008 06:59:50 -0400

> Novartis has scooped up a bigger share of Alnylam stock. The pharma giant now owns 13.3 percent of the company. Alnylam release

> Curious how the FDA might spend its PDUFA fees? A new five-year plan shows that FDA will plow the money into post-marketing safety to meet its commitments under the new law passed last fall. FDA report

> The FDA has chastised ZymoGenetics' maiden effort to commercialize a therapy, saying that its claims for a genetically engineered form of Thrombin are "false or misleading." ZymoGenetics' marketing material notes that the drug has a lower level of antibody formation compared to a competitor, creating the impression that bovine thrombin's antibodies are less safe. Story

> Genzyme has expressed an interest in setting up an Israeli biotech incubator. Report

> Proteome Sciences said it has won a grant of €571,000 to study the proteomics end of a new generation of in-vitro assays. Report

> Did GlaxoSmithKline try to monopolize the Wellbutrin market? A lawsuit now certified as class-action says so. GSK report

> Will today's Congressional hearing on drug ads lead to new legislation? That's what Michigan Democrat--and vocal pharma critic--Bart Stupak hopes. DTC report

> New CEOs often clean house. Biovail's Bill Wells looks like he's trying to gut and rebuild it. The company announced it would shutter two plants in Puerto Rico as it shifts focus to specialize in central nervous system meds, "a market where unmet medical needs and growth potential are high," Wells said. Biovail report

> Merck's layoffs have inspired one newly unemployed poet to write in verse. Report

And Finally… Vaccine experts are pondering just how long vaccines will be able to provide immunity in a world where some diseases are all but eliminated and natural exposure to many common viruses has ended. Vaccine report

Report: Wilex, GPC nearing merger pact

Wed, 07 May 2008 06:59:58 -0400

Two German biotech companies which share a very big investor are preparing to merge, according to a prominent German newspaper. Wilex and GPC Biotech, both involved in developing new cancer therapies, are each backed by SAP founder Dietmar Hopp. Analysts say that a merger would suit both biotechs. GPC is well funded but doesn't have the late-stage therapeutics that investors love, while Wilex has a compelling late-stage project for kidney cancer. GPC's satraplatin recently failed in a clinical trial, adding to its motivation to merge.

The companies, though, aren't talking about any of it. Complicating the rumors: A third Hopp-based biotech--Heidelberg Pharma--has also been touted as a potential partner for GPC and Wilex. Hopp owns 15 percent of GPC, 28.52 percent of Wilex and 75 percent of Heidelberg. Wilex was a 2005 Fierce 15 company.

Just days ago GPC announced a new round of layoffs, with some of its top execs headed out the door.

- read the AFX report

SPOTLIGHT: Mystery Mistral merger is off

Wed, 07 May 2008 06:59:53 -0400

Canada's Mistral Pharma says its proposed merger with an unnamed U.S. specialty pharma company will not be completed. As a result, its bridge financing deal has been canceled and management has responded with "temporary layoffs" as it conserves cash and explores strategic alternatives. Three of its directors have resigned. Release