Agennix Cuts 55% of Jobs
After the failure of their experimental lung cancer drug, talactoferrin, in a late-stage clinical trial, Germany’s Agennix announced on Friday that they are reducing their workforce by roughly 55%.
The restructuring plan will result in 37 jobs being lost and the firm’s Houston, USA site being closed down. Around 30 staff will remain in the business and will be located at the organisation’s two remaining sites, Planegg/Munich, Germany and Princeton, New Jersey, as the company decides their “next strategic steps.”
Agennix’s problems initiate from Phase III data which was revealed earlier this month showing that their lead drug, talactoferrin, did not meet its primary endpoint to demonstrate an overall survival benefit in patients with non-small cell lung cancer.
Since the failure of talactoferrin a number of analysts have predicted that the organisation, which is publicly quoted but majority-owned by well-known entrepreneur Dietmar Hopp, may soon fold.
Agennix anticipates having necessary cash to fund operations into the first quarter of 2013 and, as of the 30th June, the company had cash and equivalents of 22.7 million euros. The organisation added that the costs of restructuring will in the near term offset projected longer-term savings from these cuts.
Chief financial officer, Torsten Hombeck commented that “our immediate objective of conserving cash has sadly necessitated significant staff reductions in both Germany and the USA.” Hombeck added that talks are on-going with the company’s supervisory board to decide on the company’s future direction, with the organisation providing “an update in the near future.”