Spurned by the FDA, GTx slashes its staff in restructuring

After watching its share price plunge in early November after the FDA demanded another late-stage trial of its experimental bone loss drug, GTx (GTXI) announced that it will have to axe 28 percent of its workforce in a restructuring.

"The delay of the commercialization of toremifene 80 mg has forced us to make difficult choices," said Dr. Mitchell S. Steiner, CEO of Memphis-based GTx. "We appreciate the contributions the employees affected by today's announcement have made to GTx and are grateful for their efforts and dedication." GTx had sought an approval to market toremifene to prevent bone fractures in men suffering from prostate cancer.

GTx added that its hanging on to its core commercial and medical execs, determined to be prepared for a commercial launch of toremifene. But it's likely to be a little bleak for the survivors this Christmas season. Bonuses for 2009 are out and none of the survivors are getting a base pay raise for 2010.

- here's the GTx release
- read the story from Reuters