Cell Genesys shrinks into survival mode

Struggling to survive, South San Francisco-based Cell Genesys has cut its staff to nine employees, relocated to temporary office space and brought in Lazard Freres & Co. to evaluate its strategic options.

The options include a sale of the company or its assets, more restructuring, licensing deals and liquidation. Cell Genesys reported that over 98 percent, or approximately $67 million aggregate principal amount of its 3.125 percent convertible bonds, were tendered in its previously announced exchange offer. Once the exchange offer is settled, the company is expected to have $36 million in cash and 109.6 million shares of stock are expected to be outstanding.

Last October, Cell Genesys shelved a late-stage trial of GVAX immunotherapy in patients with prostate cancer after its independent monitoring board concluded that the trial had less than a 30 percent chance of success.

- check out the Cell Genesys release

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