Neose shutters San Diego operation, cuts staff in restructuring

Hit with a recent delay in its development of a key drug, Horsham, Pennsylvania-based Neose Technologies will close a San Diego facility in a restructuring that will cut a quarter of its work force. The move follows earlier announcements of cuts in executive compensation and its expenses. In late July the FDA put human tests of its experimental anemia drug on hold, sending shares down 20 percent. The FDA had asked for more data before allowing the trials to begin.

"While necessary to allow us to continue to develop our proprietary protein therapeutic candidates, this is a painful decision," said C. Boyd Clarke, Neose's president, CEO, and chairman. "The employees affected by this restructuring have contributed significantly to the Company, and we will miss working with them. While we continue to be confident about the prospects of NE-180 and are sustaining our guidance provided last month, we have reached the stage of our evolution where we have an over- capacity relative to the near-term requirements of our protein product pipeline."

- read this press release for more

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