Progenics to trim staff and focus on oncology

Published: 16-Sep-2011

US firm will cut 26% of its workforce


Progenics Pharmaceuticals of Tarrytown, New York, US has outlined plans to cut 38 jobs, more than a quarter of its workforce, and narrow its focus on oncology.

The job losses will result from the closure of the biopharmaceutical firm’s cGMP manufacturing facility, the discontinuation of work in virology and infectious diseases, and the completion of development activities related to Relistor.

The firm estimates that annual expenses will be reduced by approximately US$7.5m as a result of these actions.

Progenics' chief executive Mark Baker said the firm would be stronger for taking these actions.

‘We have enhanced our focus. We had been operating across too many therapeutic areas and became spread too thin. As a result, our resources and attention were divided in a way that caused inefficiencies, and blocked us from maximising the potential of our programmes,’ he said.

‘We have elected to concentrate on oncology, where we can be among the best and bring needed therapies to a growing market. Progenics will be leaner, more nimble and more decisive.’

Salix Pharmaceuticals has taken over the development and commercialisation activities and expenses for opioid analgesic Relistor (methylnaltrexone bromide), which licensed rights for markets worldwide other than Japan, earlier this year. Ono Pharmaceutical holds an exclusive licence for the subcutaneous formulation of Relistor.

Progenics said it would add jobs and financial resources to build on its PSMA ADC clinical and multiplex kinase inhibitor research programmes and will seek to in-license complementary opportunities in oncology.

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