Progenics Pharmaceuticals confirms 77 job cuts

Published: 24-Sep-2012

Will continue to focus on developing cancer drugs


Progenics Pharmaceuticals of Tarrytown, New York, has cut 77 jobs, or 26% of its workforce, in a company wide restructuring, which was first mooted 12 months ago.

The job losses are a result of the termination of several early stage research projects, last year's out-licensing of Relistor (methylnaltrexone bromide) subcutaneous injection for treating opioid-induced constipation to Salix Pharmaceuticals for markets worldwide other than Japan, where Ono Pharmaceutical holds an exclusive licence for the subcutaneous formulation, and planned divestitures of the previously discontinued PRO 140 and C. difficile programmes.

Progenics says these actions follow the US FDA’s Complete Response Letter related to a Supplemental New Drug Application for the use of subcutaneous Relistor in patients with chronic, non-cancer pain. The FDA denied approval for the drug for this wider indication in July and asked for more data.

Under the terms of its agreement with Salix Pharmaceuticals, Progenics would be entitled to a US$40m milestone payment upon regulatory approval of Relistor for this indication.

Mark Baker, chief executive of Progenics, said the restructuring reflects the firm’s commitment to addressing the growing need for novel and improved cancer therapies.

‘Our top clinical priority remains advancing PSMA ADC, while continuing to evaluate strategic in-licensing opportunities,’ he said.

Preclinical research will continue in the company's phosphoinositide 3-kinase (PI3K) programme for the treatment of cancer.

The company will also focus its resources in an upcoming Phase II study of PSMA ADC in prostate cancer patients.

The firm says annual cash expenses will be reduced by an estimated US$8m after the restructuring and severance costs.

Chief financial officer Robert McKinney and senior vice president of quality Benedict Osorio will step down at the end of this month.

Progenics said treasurer Angelo Lovallo will become principal financial officer and principal accounting officer.

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