Waltham, MA-based Altus Pharmaceuticals is the latest biotech company to fall victim to the economic crisis roiling the industry. Altus announced that it is slashing 107 jobs--75 percent of its work force--and will reduce its research focus to a single program as it hunkers down.
Altus will drop development of Trizytek, an enzyme replacement therapy, likely breeching its 2001 agreement with Cystic Fibrosis Foundation Therapeutics Inc. But Altus adds that it is in talks to transfer drug rights to CFFT and will "assume funding responsibility for the ongoing Phase III long-term safety study for Trizytek."
The company's CFO, CMO and vice president of business development are all departing the company. They'll continue to get their regular salary for nine months and health benefits for 18 months. And the remaining executives are being guaranteed 12 months income if they are terminated for anything besides cause.
"In this time of global economic uncertainty and limited cash resources, we were faced with the difficult decision of realigning our operations to support a single clinical development program. We believe that ALTU-238 represents a very promising opportunity to make a major impact on the multi-billion dollar market for growth hormone replacement products. As a mid-stage program with a relatively straight-forward path toward regulatory approval, narrowing our focus on ALTU-238 will enable Altus to preserve capital, minimize clinical and regulatory risk, and build value for our shareholders," said CEO Georges Gemayel (photo).
- read the report from the Boston Business Journal
- check out the Altus release