GPC Biotech Consolidates Drug Discovery Activities
*Waltham, Massachusetts Facility to be Closed * All Drug Discovery to be Managed in Munich * Ongoing Expansion of Clinical Development and Commercialization in Princeton, New Jersey
MARTINSRIED/MUNICH, Germany, PRINCETON, N.J. and WALTHAM, Mass., May 3, 2007 - GPC Biotech AG today announced that it is consolidating its drug discovery efforts to one location. This consolidation involves closing the Company's facility in Waltham, Massachusetts and a staff reduction involving approximately 16% of the Company's total workforce. Affected employees will be eligible for severance packages that include severance pay, continuation of benefits and outplacement services. The drug discovery programs currently being managed in Waltham will be moved to Munich. The Company is continuing to build its clinical development and commercialization groups based in Princeton, New Jersey.
Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer, said: "With the acquisition of the assets and the hiring of many research scientists of Munich-based Axxima Pharmaceuticals in 2005, as well as the ending this year of the collaboration with ALTANA Pharma in Waltham, we have decided to consolidate our drug discovery activities into one location - Munich - and we will be making further investments in our drug discovery efforts there. While we believe this action makes sense for the Company strategically, it was not a decision we made lightly as it has necessitated the closing of our Waltham site. I would like to express my sincere appreciation to our Waltham-based employees for their important contributions to GPC Biotech."
Dr. Seizinger continued: "Importantly, we will continue to have a strong and growing presence in the U.S. at our Princeton, New Jersey site, where we have an ongoing effort to expand our clinical development team and build our commercialization organization, including hiring a field sales force for the U.S."
About GPC Biotech GPC Biotech AG is a publicly traded biopharmaceutical company focused on discovering, developing and commercializing new anticancer drugs. GPC Biotech's lead product candidate satraplatin is currently under review by the U.S. FDA for hormone-refractory prostate cancer patients whose prior chemotherapy has failed. Satraplatin was in-licensed from Spectrum Pharmaceuticals, Inc. GPC Biotech is also developing a monoclonal antibody with a novel mechanism-of-action against a variety of lymphoid tumors, currently in Phase 1 clinical development, and has ongoing drug development and discovery programs that leverage its expertise in kinase inhibitors. GPC Biotech AG is headquartered in Martinsried/Munich (Germany), and has a wholly owned U.S. subsidiary headquartered in Princeton, New Jersey. For additional information, please visit GPC Biotech's Web site at www.gpc-biotech.com.
This press release contains forward-looking statements, which express the current beliefs and expectations of the management of GPC Biotech AG. Such statements are based on current expectations and are subject to risks and uncertainties, many of which are beyond our control, that could cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially depending on a number of factors, and we caution investors not to place undue reliance on the forward-looking statements contained in this press release. We direct you to GPC Biotech's Annual Report on Form 20-F for the fiscal year ended December 31, 2005 and other reports filed with the U.S. Securities and Exchange Commission for additional details on the important factors that may affect the future results, performance and achievements of GPC Biotech. Forward-looking statements speak only as of the date on which they are made and GPC Biotech does not undertake any obligation to update these forward-looking statements, even if new information becomes available in the future.