Struggling GTx axes 53 staffers in restructuring after PhIII failures

Less than two months after GTx ($GTXI) watched its stock price tank after conceding the failure of a pair of Phase III studies for its lead program, the biotech has taken out the budget ax and chopped out 60% of its workforce. In an SEC filing the biotech noted that 53 staffers got the pink slip yesterday and top execs took a pay cut as the company hunkers down and works to survive the setback.

Memphis-based GTx CFO Mark Mosteller is joining the exodus after resigning about a week ago. CEO Mitchell Steiner's salary is being reduced from $565,110 to $452,088. This morning the company's shares were down 13%, trading at $1.62.

The biotech and lead investigator both tried to rally support for the results in August, claiming that despite enobosarm's inability to achieve the primary endpoints for improvements in lean body mass (muscle) and physical function, there were clear signs that the drug was strengthening patients. The idea behind this study was that stronger patients suffering from non-small cell lung cancer (NSCLC) would live longer. Investors, though, weren't in any mood to accept the company's bullish interpretation of failure. GTx's share price immediately plunged close to 70%.

The company recruited about 325 patients with stage III or IV NSCLC and randomized two groups for oral daily doses of placebo or enobosarm 3 mg at the time they began first-line standard platinum doublet chemotherapy.

- here's the 8-K