Germany's Evotec is cutting 50 jobs as part of a restructuring plan designed to "significantly reduce its operating costs." The job cuts will be accompanied by a 10 percent cut in selling, general and administrative expenses, and a 30 percent drop in R&D spending, a move the company says will extend its cash runway beyond 2012.
As a result of the cutback, Evotec said more of its programs "will be available for strategic partnering discussions in the near future." The company intends to enter into alliances with pharma partners, and expand its indication focus to neuroscience, pain and inflammation. However, Evotec will keep the opportunity and core competences necessary to develop at least one of its pipeline products. It's pipeline includes:
- EVT 302 for smoking cessation (Phase II)
- EVT 101 for use in treatment resistant depression (Phase II, partnered with Roche)
- a P2X7 antagonist for rheumatoid arthritis (Phase I)
- an H3 and a P2X3 antagonist program (Phase I in 2010)
"To ensure that our efforts are focused on core differentiated projects and activities that will deliver the greatest value to stockholders and partners, we have made some prompt and clear decisions regarding our financial resources and strategic direction," said Dr. Werner Lanthaler, CEO of Evotec. "We will significantly downsize our SG&A costs, focus on core research and development programs and make more projects available for strategic partnering. At the same time we have decided to invest and expand our successful discovery alliance business."
- take a look at this release from Evotec